The Impact of Timely Identification of Unachieved Losses on Stopping Non-profitable Operations and the Cost of Capital of Companies Accepted in Tehran Stock Exchange

seyd hadi hashemi¹ hamid reza akhbari²

1) Iran payame noor of department accounting
2) Iran payame noor of accounting masters student

IOI Code : XYFC-BBAKC
Publication : International Conference on new Idea In Management Economics & Accounting(imeaconf.com)
Abstract :
    Abstract The main objective of the present research is to investigate the relationship between timely identification of unachieved losses with termination of non-profitable operations in companies accepted in Tehran stock exchange. In this research, in accordance with the foregoing objectives, 3 hypotheses have been raised that have been statistically analyzed. 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 hypotheses have 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 by increasing delay in terminating the profitable operation, timely identification of unachieved goes up. However, 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