Effects of Corporate Social Responsibility on Sticky Cost Behavior

This study is aimed to investigate effects of corporate social responsibility on sticky cost behaviour in firms listed in Tehran Stock Exchange. For this purpose, five hypotheses are developed and data on the 105 firms listed in Tehran Stock Exchange for the period from 2006 to 2015 are analysed. The hypotheses are tested by regression model using panel data with fixed effects approach. The results show that there is sticky cost phenomenon in firms listed in Tehran Stock Exchange. In addition, the results show that the ratio of employee number to total assets, the ratio of research, development and advertising costs to sales and the ratio of tax to sales, as indicators of corporate social responsibility, have significant positive influence on sticky cost behaviour. Also, the results indicate that the ratio of fixed assets to total assets and corporate governance ability, as indicators of corporate social responsibility, have no significant effect on sticky cost behaviour of Iranian firms.