Ali Shirzad - Ph.D. Student in Accounting, School of Economics and Administrative Sciences,Ferdowsi University of Mashhad, Mashhad, Iran
Mohammad Javad Saei - Assistant Professor of Accounting, School of Economics and Administrative Sciences,Ferdowsi University of Mashhad, Mashhad, Iran
Farzaneh Nassir Zadeh - Associate Professor of Accounting, School of Economics and Administrative Sciences,Ferdowsi University of Mashhad, Mashhad, Iran.
Hassan yazdifar - Professor of Accounting and Head of Accounting, Finance and Economics Department, Bournemouth university, England

The main aim of this study is to present a new methodology for separating the sources of cost stickiness. In previous research, various factors have been shown to affect cost stickiness. These factors are rooted in the industry and firm-specific characteristics or specific events, which may occur each year at national or international scales. Overall, they could be classified into three groups: ۱. Year-specific events and features, ۲. Industry-specific and ۳. Firm-specific characteristics. In this study, in the first step, a new methodology is presented to separate the sources of cost stickiness, including a novel method for calculating cost stickiness for each firm-year. In the second step, we investigated the effect of each firm-year stickiness and each source of stickiness on the management earnings forecast accuracy (MEFA). To investigate the validity, the results compared with Anderson et al. (۲۰۰۷). The statistical population of the study consisted of all companies listed on the Tehran Stock Exchange, from which ۱۰۸۰ observations in ۲۰۱۴-۲۰۱۸ period were selected and reviewed. Our results indicated that MEFA has a negative and significant relationship with total stickiness, stickiness of each year and each company, but no significant relationship was found with stickiness of each industry. In addition, the results of using the proposed method are consistent with Anderson et al.’s (۲۰۰۷) model and even more significant to that. The findings suggest that the events of each year and the intra-organizational events of each company have a greater impact on cost behavior. Hence, it is necessary for managers and financial analysts to take into account each source of cost stickiness, especially year-specific events and firm-specific characteristics, and consider their effects in earnings forecast to improve their MEFA.

Cost stickiness, Management Earnings Forecast, Political factors, Industrial factors, Intra organizational factors.