International Academic Journal of Accounting and Financial Management

  • ISSN 2454-2350

Investigating the Delay in Terminating Non-Profitable Operations Reduces the Cost of Capital in Corporations of Accepted in Tehran Stock Exchange

Hamid Reza Akhbari

Abstract: The main objective of this research is to investigating the delay in terminating non-profitable operations reduces the cost of capital in Companies Accepted in Tehran Stock Exchange. In this research statistical samples include 160 companies accepted in Tehran stock market whose data has been statistically analyzed during a period of 10 years (from 2005 until 20144). Research hypothesis has been through multiple regression and logistic models; according to the findings, increasing the timely realization of unachieved losses raises the possibility of stopping non-profitability. Also, the results showed that in consistent with the findings; the delay in stopping non-profitable operations has had no effect on the cost of the capital of statistical sample of companies during the course of the study.

Keywords: Timely Identification of Unachieved Losses, Termination of Non-profitable Operation, Cost of Capital, Corporations of Accepted, Tehran Stock Exchange

Page: 71-78

Volume 1, Issue 1, 2014