STICKY COST BEHAVIOR AND ACCOUNTING CONSERVATISM: EVIDENCE FROM TEHRAN STOCK EXCHANGE

Abstract

The purpose of this study is to fill the existing gap in the literature by examining the answers to these questions that what is the relationship between accounting conservatism and price stickiness in firms listed in Tehran stock exchange.The research population consisted of all companies listed in Tehran Stock Exchange, which are over a period of six years, from 2007 to 2012, respectively.Default assumptions were applied in sequence, so that the first company in default, the following assumptions are not counted. In this study, after the default, the remaining were 106 companies from 19 industries.The required financial statements data are extracted fromTehran Stock Exchange. To analysis of Research hypothesis was used linear regression. Findings show that between the behaviors of price stickiness and accounting conservatism there is a direct correlation.