Asymmetric Cost Behavior, Industry Type, and Levels of Conservatism (Comparative Study of Non-Operating Accrual, Basu, and Market Value Models)
الموضوعات :Zakvan Imani 1 , Mohammad Hossein Ranjbar 2 , Faegh Ahmadi 3 , Hamidreza Vakilifard 4
1 - Department of Accounting, Qeshm International Branch, Islamic Azad University, Qeshm, Iran
2 - Department of Accounting, Faculty of Humanities, Bandar Abbas Branch, Islamic Azad University, Bandar Abbas, Iran
3 - Department of Management and Accounting, Qeshm Branch, Islamic Azad University, Qeshm, Iran
4 - Department of Management, Science and Research Branch, Islamic Azad University, Tehran, Iran
الکلمات المفتاحية: conservatism levels, cost stickiness, industry type,
ملخص المقالة :
The present study aims to examine the relationship between cost stickiness and conservatism levels according to the type of industry. This purpose is achieved using the combined data technique and three models of non-operating accruals, the Basu model, and the market value model with a sample consisting of 113 companies listed on the Tehran Stock Exchange (TSE) over the period 2011 to 2020. Findings show that based on the model of non-operating accruals in the automotive, pharmaceutical, chemical, and food industries, cost stickiness decreases the level of conservatism. However, in the machinery industry, the relationship is significantly based on this model, but cost stickiness does not reduce the level of conservatism. According to the Basu model in the chemical, food, and basic metals industries, cost stickiness reduces the level of conservatism. But in the pharmaceutical industry and machinery and equipment, there is a significant relationship according to this model, but cost stickiness does not decrease the level of conservatism in companies. Also, based on the market value model in the automotive, chemical, machinery, and basic metal industries, there is a significant association, but cost stickiness does not decrease the level of conservatism in companies.
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