محمدامین سرخابی

With the separation of ownership from management, the company's financial policy is adopted by the company's managers. However, the manager may make decisions in line with his personal interests and not the interests of the shareholders, which leads to an increase in the capital cost of companies. Therefore, the capital structure, such as the presence of institutional investors and the concentration of ownership due to their ownership and supervision of the manager, may lead to a change in the behavior of companies (including financial policies), which ultimately leads to a reduction in the company's capital cost. However, in the absence of appropriate scientific and experimental evidence, the current research examines the effect of the type and concentration of institutional ownership and the cost of capital. In this regard, a sample consisting of ۱۳۶ companies admitted to the stock exchange during the period of ۲۰۱۳-۲۰۲۱ was selected and tested. The results using the multivariate regression method show that ownership concentration, institutional ownership and high passive institutional ownership in the company lead to a reduction in the company's cost of capital. However, active institutional ownership does not affect the cost of capital. Also, the results of the test with the generalized system of moments (GMM) method also confirm these relationships. In addition, the additional test also showed that ownership concentration and active institutional ownership have a U-shaped relationship with cost of capital. That is, the negative relationship between ownership concentration and active institutional ownership with the cost of capital, if it crosses a certain threshold level, has a positive effect on the cost of equity capital. However, institutional ownership and passive institutional ownership in any case lead to a reduction in the cost of capital.

Keywords: institutional ownership, ownership structure, cost of capital.