The relationship between cost stickiness and financial reporting quality in Tehran Stock Exchange

Abstract

Purpose

The purpose of this paper is to investigate the relationship between financial reporting and cost stickiness in companies listed on the Tehran Stock Exchange.

Design/methodology/approach

Data of all Iranian manufacturing listed companies gathered for testing hypotheses during 2010–2016 and R statistical software are employed in order to analyzing data.

Findings

The results of this study indicate that there is a significant relationship between administrative, sale, material, labor and overhead costs and the financial reporting qualities of the companies under study.

Originality/value

The study focuses on relationship between financial reporting and cost stickiness in companies listed on the Tehran Stock Exchange, which is the first study of its type in Iran.

Citation

Salehi, M., Ziba, N. and Daemi Gah, A. (2018), "The relationship between cost stickiness and financial reporting quality in Tehran Stock Exchange", International Journal of Productivity and Performance Management, Vol. 67 No. 9, pp. 1550-1565. https://doi.org/10.1108/IJPPM-10-2017-0255