The Effect of the Company's Strategy and Managerial Ability on Asymmetric Cost Behavior

Document Type : Research Paper


1 Assistant Prof., Faculty of Management and Accounting, Islamic Azad University, Central Tehran Branch, Tehran, Iran

2 Instructor, Faculty of Humanities, Islamic Azad University, Tehran East Branch, Tehran, Iran

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


The aim of this study isto examine the effect of the company's strategy (Including competitive strategy, investment strategy, financing strategy, company strategy based on past information, and company strategy based on future information) and managerial ability on asymmetric cost behavior. For this purpose seven hypotheses are developed and data about 106 companies listed in the Tehran Stock Exchange for the period between the years 2006 to 2015 are analyzed. Regression models using panel data approach are reviewed and tested. The results show that the investment strategy, company strategy based on future information and management ability increase the asymmetry of cost behavior.In addition, the results show that the company's competitive index and financing strategy variables reduce the asymmetry of cost behavior.On the other hand, the results indicate that the company strategy based on past informationand GDP growth have no significant effect on the asymmetry of cost behavior in companies listed in the Tehran Stock Exchange.


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