Explaining the Relationship Between Sticky of Expenses with Prediction Error of Profit in Tehran Stock Exchange
محورهای موضوعی : Financial AccountingReza Jamkarani 1 , Ali Lalbar 2
1 - Department of Accounting, Ghom Branch, Islamic Azad University, Ghom, Iran.
2 - Department of Accounting, Arak Branch, Islamic Azad University Arak, Iran
کلید واژه: behavior, forecast error of Earnings, cost behavior, Sticky cost behavior of sold, adherent goods, bonding, General and AdministraTive, Expenses,
چکیده مقاله :
One of the basic assumptions of management accounting illustrate that costschanges has a significance Relationship with increasing and decreasing in the levelof activity, recently after being raised of sticky costs issue by Anderson and hiscolleagues this assumption was discussed. It means Increases in costs by increasingthe more activity level of reduction in costs is exchange for the reduction in thelevel of activity. Anderson et al (2003) changed the expression of Cost behavior tosticky costs. The Subject profit forecast error is one of the issues that can affectinvestment decisions to hold or transfer of shares, because purchase of shares ofthe new company's stock is riskier process than other companies; Because of itslack of trading Background, historical information related to their is low. Accordingly,in prediction two fundamental goals follow: The first one obviously is theproper planning and second one is Familiarity and deployment of predictive techniquesusing predictive techniques for decision making and problem solving process.The aim of this study was to investigate the relationship between forecasterror of earnings and sticky cost in Tehran Stock Exchange. To achieve this aim, amain hypothesis and sub-hypothesis has been proposed, and to test hypothesesdata 108 firms listed companies in Tehran Stock Exchange using systematic samplingpurposefully selected, and data of the period between 2007 to 2013 was usedfor statistical analysis. Finally, the results indicate that There is an inverse relationshipbetween sticky costs and forecast error of earnings, and also betweensticky cost of goods sold and sticky costs of sales.
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