A Study of the Correlation betweenCost Layoff and Cost Stickiness

Subject Areas : Ethics and accounting

Mohammad Hosein Vadeei Noghani ¹ , Seyed Mohsen Salehi Vaziri ²

1 - Associate Professor, Department of Accounting, Faculty of Administrative and Economic Sciences, Ferdowsi University, Mashhad, Iran
2 - PhD., Student, Department of Accounting, Faculty of Administrative and Economic Sciences, Ferdowsi University, Mashhad, Iran

Received: 2022-06-23 Accepted : 2022-08-08 Published : 2022-09-23

Keywords: Cost stickiness,  Behavior, labor, Legal Claims,

Abstract :

Purpose: The purpose of the present study is to review the correlation between layoff cost and asymmetric cost behavior or cost stickiness.Methods: The number of workers and legal claim costs for searching layoff costs were chosen as 2 criteria in this research. The sample under study included 108 corporations accepted in Tehran Stock Exchange during 2016-2021.Results: An increase in the number of workers leads to more labor cost stickiness and if their number declines, labor cost stickiness decreases too. As for legal claims, if a corporation has more legal claims, labor cost stickiness goes up and if it has less legal claims, labor cost stickiness comes down too.Conclusions: Layoff costs play a main role in moderating cost behavior models. 

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