Cost behavior analysis based on chaos theory

Subject Areas : Financial engineering

Azizollah  Rangraz basaligheh ¹ (Department of Accounting, Qazvin Branch, Islamic Azad University, Qazvin, Iran)
Fereydoon  rahnamaroodposhti ² (Department of Accounting, Science and Research Branch, Islamic Azad University, Tehran, Iran)
Fazel  Mohammadi Nodeh ³ (Department of Accounting and Management,Lahijan Branch. Islamic Azad University, Lahijan, Iran)
sina  Kheradyar ⁴ (Department of Accounting, Rasht Branch, Islamic Azad University, Rasht, Iran)

Received: 2020-01-14 Accepted : 2020-08-04 Published : 2021-09-23

Keywords: Chaos theory, cost behavior, Lyapunov ViewCompanies Listed in Tehran Stock Exchange,

Abstract :

The main purpose of this study is to analyze the cost behavior of the companies accepted based on chaos theory. The purpose of the study is of an applied type. . In this study, 69 companies with 416 observations . Corporate financial data was generated by innovative management software and leadership software. Various tests were used for data analysis such as BDS correlation tests for nonlinearity of time series, Dickey Fuller for correlation, Lyapunov power for turbulent cost behavior. Dickey Fuller test results showed that all of Mana's costs behaviors were the same. The results of BDS test showed that the studied cost behavior is nonlinear and chaotic non-random. As a result, the time series studied are generally chaotic. The results of the Lyapunov test view showed that all the Lyapunov coefficients were calculated for positive cost variables. Therefore, it can be said that the research variables have a butterfly effect. That is, the company's cost behavior is unstable (divergence). According to the Lyapunov power test, non-operational costs are less sensitive and more stable and have high predictability; and investment costs are more sensitive and less stable and less predictable.