Business strategy is an innovative way to showcase unique assets, enhance excellence, and contribute to the performance of the company's components. In this research, the relationship between business strategy and the cost of equity has been investigated by considering the impact of stock price fluctuations. The final sample of the research was selected using a systematic (screening) and non-random sampling method over six years, from 2015 to 2020. Research hypotheses were examined using a multiple regression model by Eviews9 software. The results showed a significant relationship between cost leadership strategy and differentiation strategy with the cost of equity among the studied sample. Also, other research results showed that stock price fluctuations significantly affect the relationship between cost leadership strategy and cost of equity (Gordon). However, price fluctuations do not significantly affect the relationship between differentiation strategy and the cost of equity.

Business Strategy, Cost Leadership strategy, Differentiation Strategy, Cost of Equity, Price Volatility.