The Relationship between Corporate Ownership Structure and Firms’ Capital Cost

The purpose of the present study is to investigate the effects of corporate ownership structure on capital cost of firms of food and medicine industry accepted in Tehran stock exchange. Research hypotheses stated that corporate ownership structures have meaningful relationship with firms’ capital cost, information quality has relationship with firms’ capital cost, ownership structures have relationship with firms’ capital cost and board of director structure has relationship with capital cost of firms. So 38 firms were considered from 2004 to 2008. Also the test was done separately for each industry and the results showed that firms’ capital cost are not affected by corporate ownership structure. In other words it can’t be accepted that there is a meaningful relationship between features of corporate ownership structures (financial information quality, ownership structure and board of directors structure) and firms’ capital cost.