Are Auditing costs ‘sticky’? Examination of Audit Fee Stickiness in Tehran Stock Exchange

In this study we examine audit fee stickiness. Previous studies have shown that categories of expenditure (such as Selling, General and Administrative costs) are sticky. By using the data from Tehran Stock Exchange between 2010 and 2014 we examine our three hypotheses. The result show that audit fee respond to changes leading to an increase more quickly than they respond to change leading to a decrease, audit reversed in the next year and stickiness declines over the period longer than one year.

Keywords:

Cost behavior , Cost stickiness , Audit fee