The moderating role of adopting International Financial Reporting Standards (IFRS) on the relationship between Earning Quality With equity costs (Empirical Evidence: Banks and Insurance firms and Investments firms in Tehran Stock Exchange)

Document Type : Original Article

Authors
Nader Asadi Nahari 1
Ghodratollah Talebnia 2
Hamid Reza Vakilifard 3
Ramezanali Royayee 4
1 Student Financial management Phd ,International branch,Islamic Azad university,Kish,Iran
2 Department of Accounting,Associate,Science and Research Branch,Islamic Azad University, Tehran,Iran (Corresponding Author)
3 Department of Accounting,Associate,Science and Research Branch,Islamic Azad University, Tehran,Iran
4 Department of Financial,Associate Professor, Science and Research Branch,Islamic Azad University, Tehran,Iran
Abstract
In the present study, we investigate and determine the effect of the adoption of International Financial Reporting Standards (IFRS) on the cost of shareholders' equity of banks and insurance firms and Investments firms , Impact of International Financial Reporting Standards (IFRS) Adoption on the Relationship Between Quality of Earnings and Cost of Equity , in banks and insurance and investment  firms in Tehran Stock Exchange. The question of the present research phrase is Does the adoption of the IFRS modify the relationship between the quality of earnings with the cost of equity? In order to test the hypothesis of the research, multiple linear regression model has been used with generalized least squares method. Findings show In the period after the adoption of the IFRS The cost of equity has decreased The inverse relationship between the quality of earnings and the cost of equity is increased. 
 
Keywords
International Financial Reporting Standards
Earning Quality
Equity Cost
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