The moderating role of corporate governance on the relationship between financial risk and cost of goods sold stickiness

Cost behavior plays an important role in the growth of sales and profitability of the company, and its effect on users' decision-making and determining the value of companies has made researchers pay attention to the asymmetric cost behavior again. The current research was conducted with the aim of investigating the moderating role of corporate governance on the relationship between financial risk and the stickiness of the cost of goods sold. The data of this study was collected from the audited annual reports of 128 manufacturing companies admitted to the Tehran Stock Exchange during the years 2013 to 2022 with a total of 1280 company-year observations, and the structural equation model approach was used to present the model. The findings showed that the cost of goods sold in the studied sample has a sticky behavior and financial risk and corporate governance have a positive and significant relationship with the stickiness of the cost of goods sold and also corporate governance moderates the relationship between financial risk and stickiness of the total price. The product has been sold. The results of the study can be useful for managers in order to understand cost behavior for planning, controlling and reducing costs, as well as for financial analysts and investors to evaluate the performance of companies and finally make investment decisions.