The effect of Earnings Targets and managerial incentives on Intensity Cost Sticky in companies listed in Tehran Stock Exchange

Document Type : Original Article

Authors

1 Msc, Department Of Accounting ,Payame Noor University

2 Assistant Prof., Faculty of Humanities, Islamic Azad University, Tehran East Branch, Tehran, Iran

3 Ph.D. Student in Accounting, Faculty of Management and Accounting, Islamic Azad University, Central Tehran Branch, Tehran, Iran

Abstract

The aim of this study is to investigate the effect of Earnings Targets and managerial incentives on Intensity Cost Sticky In companies listed in Tehran Stock Exchange. For this purpose three hypotheses are developed and data on the 120 companies in Tehran Stock Exchange for the period between 1384 to 1393 were analyzed. This regression model using panel data with fixed effects approach, reviews and tests. The results showed that there is in companies listed in Tehran Stock Exchange phenomenon Cost Sticky and In case of the presence of incentives to meet earnings targets (incentives to avoid losses, incentives to avoid earnings decreases and incentives to meet earnings forecast), Intensity Cost Sticky is reduced. Additionally, managers for an amount equal declining sales, cut costs more aggressively in the presence of incentives to meet earnings targets than absent these incentives. Also, the results showed that motivation to meet earnings targets last year, Caused increase of Intensity Cost Sticky in the current period.

Keywords

Accounting and Auditing Research
Volume 10, Issue 38
July 2018
Pages 121-144

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