چکیده:
Cost and expense stickiness is an important issue in accounting and economics research, and
the literature has shown that cost stickiness cannot be separated from managers’
motivations. In this paper, we examine the effects that earnings management has on expense
stickiness. Defining small positive profits or small earnings increases as earnings
management, we observe significant expense stickiness in the non-earnings-management
sub-sample, compared with the earnings-management sub-sample. When we divide
expenses into R&D, advertising and other general expenses, we find that managers control
expenses mainly by decreasing general expenses. We further examine corporate
governance’s effect on expense stickiness. Using factor analysis, we extract eight main
factors and find that good corporate governance reduces expense stickiness. Finally, we
investigate the interaction effects of earnings management and corporate governance on
expense stickiness. The empirical results show that good corporate governance can further
reduce cost stickiness, although its effect is not as strong as that of earnings management.
خلاصه ماشینی:
The obtained results indicate that only three variables of the type of audit firm, organization size and the error of predicting profit for each stock are having significant relation with abnormal stock returns.
Questionassumptions the book value of assets and the market value of total assets would have a significant negative relationship with company's future abnormal returns Targethypothesis Model 1 Model 2 Modelsused totestthe first hypothesis I n d e p e n d e n t v a r i a b l e s : ( L n M V T A ) ( L n T B A ) D e p e n d e n t v a r i a b l e : Variables D u r b i n - W a t s o n s t a t i s t i c ( t h e a s s u m p t i o n o f a u t o c o r r e l a t i o n b e t w e e n t h e s e n t e n c e s o f t h e r e m a i n i n g m o d e l s ) M o d e l : D u r b i n - Wa t s o n s t a t i s t i c = 2 .
The results of research Conclusion assumptions and suggestions After reviewing the 120 companies listed on Tehran Stock Exchange during the period 2004-2013, the following results were obtained from the hypothesis: The result of the first hypothesis: The result of the first hypothesis indicates that there is a negative and significant relationship between Book value of assets and the market value of total assets of company's upcoming abnormal returns.