Investigating the Moderating Effect of Market Competitive Factors on the Relationship between Trade Credit and Asymmetric Cost Behavior
Subject Areas :
akbar karimzadeh
1
,
nader rezaei
2
*
,
Zohreh Hajiha
3
,
Rasoul Abdi
4
1 - Akbar Karimzadeh
PhD Candidate, Department of Accounting, Bonab Branch, Islamic Azad University, Bonab, Iran
2 - Assistant Prof., Department of Accounting, Bonab Branch, Islamic Azad University, Bonab, Iran
3 - Department of Accounting, Tehran East Branch, Islamic Azad University, Tehran, Iran (corresponding author
4 - Assistant Prof., Department of Accounting, Bonab Branch, Islamic Azad University, Bonab, Iran
Keywords: Asymmetric Cost Behavior, Trade Credit, Entry Cost, Market Size, Product Differentiation.,
Abstract :
Cost behavior is one of the most important and controversial issues in management accounting that broadly influences decision-making processes. Also, increasing competition in domestic and global markets has forced producers to better understand their cost structure. Therefore, in this study, the moderating effect of market competitive factors on the relationship between trade credit and asymmetric cost behavior in companies listed on the Tehran Stock Exchange has been investigated. For this purpose, the financial statements of 167 companies in the period 2010 to 2021 have been collected. Findings indicate that using all three criteria of trade credit, there is no significant relationship between trade credit and cost stickiness. Also, the results show that market competitive factors do not have a significant effect on the relationship between trade credit and cost stickiness, using all four criteria of competitive factors. Therefore, suppliers are not able to force managers to disproportionate reduction of unused resources in order to increase operational efficiency and reduce the risk of customer bankruptcy when sales decline. As a result, managers are advised to establish long-term relationships with customers by obtaining private information about their performance and operational stability, and make more efforts to monitor their cost management practices. Because this can ensure effective cost management through the external governance role of suppliers.