The effect of cost stickiness on dividend stickiness with emphasis on Surplus liquidity (Deviation from the optimal level)

Sajadi, Seyed Hosein; Bonabi Ghadim, Rahim

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year 14, Issue 55 (2023)

fa 2023, 14(55): 78-92

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The effect of cost stickiness on dividend stickiness with emphasis on Surplus liquidity (Deviation from the optimal level)

Seyed Hosein Sajadi¹

, Rahim Bonabi Ghadim ^*

1- Shahid Beheshti University, Tehran, Iran.
2- Department of Accounting,Hashtrood Branch, Islamic Azad University,Hashtrood,Iran.

Abstract: (8113 Views)

According to efficient decisions (informed decision hypothesis) and opportunistic decisions of managers (agency theory) to maximize the value of the company or personal benefits, the cost behavior and dividend behavior are affected by the adjusting resources and maintaining excess liquidity costs.Accordingly, the purpose of this study is to investigate the effect of cost stickiness on dividend stickiness with emphasis on maintaining the surplus liquidity of companies listed on the Tehran Stock Exchange. This research is applied in terms of purpose and correlation and post-event in terms of method. In order to test the research hypotheses, 154 companies were selected in the period 2013-2021 and analyzed using multiple regression models. The results showed that cost stickiness at the operational level has a significant positive effect and at the total cost level and at the industry level has a significant negative effect on dividend stickiness which indicates the ability to control and manage operating costs and the involvement of managerial decisions in adjusting resources using the main operations of production and sales of the company. The interaction effect of surplus liquidity with cost stickiness at the operational level, total costs and at the industrial level has a negative effect on dividend stickiness. In other words, cost stickiness at different levels has a different effect on the dividend stickiness, and with the increase in liquidity surplus and greater deviation from optimal level, the effectiveness of dividend stickiness from asymmetric behavior of expenses has increased.

Article number: 5

Keywords: Cost Stickiness, Dividend Stickiness, Asymmetric Behavior, Surplus liquidity.

Full-Text [PDF 529 kb] (93 Downloads)

Type of Study: Research | Subject: Special

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Sajadi S H, Bonabi Ghadim R. The effect of cost stickiness on dividend stickiness with emphasis on Surplus liquidity (Deviation from the optimal level). fa 2023; 14 (55) : 5
URL: http://qfaj.mobarakeh.iau.ir/article-1-2606-en.html

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