Investigating the effect of agency theory factors on cost stickiness in companies listed in the Tehran Stock Exchange

There are different theories about the severity of cost stickiness, including the management's tendency to maintain resource capacity during periods of declining revenue due to their unwillingness to bear the costs of adjusting or re-equipping the resources. Anderson. The present study intends to find a logical answer to the following fundamental question: Which of the factors based on the agency theory has a greater impact on cost stickiness? According to the results of testing the sub-hypothesis ۱, the amount of free cash flow had a significant impact on cost stickiness. The probability rate of the amount of free cash flow was indicative of the relationship between the amount of free cash flow and cost stickiness at the confidence level of ۹۵%. According to the results of testing the sub-hypothesis ۲, rewarding the board had a significant impact on cost stickiness. The probability rate of the board reward variable (۰.۰۰۸) was indicative of the relationship between rewarding the board and cost stickiness at the confidence level of ۹۵%. Based on the aforementioned results, in companies with high-cost stickiness, a reduction in their sale costs varies less than when these costs increase. This is considered as a managerial weakness by investors and shareholders. Whereas, one of the most important causes of cost stickiness is bearing current costs to avoid further future losses and/or to achieve more profits in the future and depends on the decisions made by the managers.

Keywords:

Agency theory factor , Cost stickiness , Tehran Stock Exchange