The Impact of Community Social Capital on Asymmetric Behavior of Cost

Objective: The purpose of this research is investigating the effect of community social capital on asymmetric behavior of cost. Social capital refers to features of social organization such as norms and networks that simplify cooperation and harmony for mutual benefit. Community social capital captu...

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Autores principales:	Amirhossein Rastegari, Reza Hesarzadeh, Mohamadjavad Saey
Formato:	article
Lenguaje:	FA
Publicado:	Shahid Bahonar University of Kerman 2021
Materias:	cost behavior cost stickiness social capital managerial opportunism Accounting. Bookkeeping HF5601-5689
Acceso en línea:	https://doaj.org/article/034460c7ebbb465280f6a814eea7d4e1
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spelling	oai:doaj.org-article:034460c7ebbb465280f6a814eea7d4e12021-11-04T19:57:05ZThe Impact of Community Social Capital on Asymmetric Behavior of Cost2008-89142476-292X10.22103/jak.2021.15957.3263https://doaj.org/article/034460c7ebbb465280f6a814eea7d4e12021-05-01T00:00:00Zhttps://jak.uk.ac.ir/article_2788_1a74fc77d48f0a453cb3626119570470.pdfhttps://doaj.org/toc/2008-8914https://doaj.org/toc/2476-292XObjective: The purpose of this research is investigating the effect of community social capital on asymmetric behavior of cost. Social capital refers to features of social organization such as norms and networks that simplify cooperation and harmony for mutual benefit. Community social capital captures the strength of cooperative norms and the density of social networks in a region. Cost stickiness is a behavioral property of cost that is substantially based on managerial decisions. In this case of cost behavior, managers are quick to expand resources when demand is increasing, but for a variety of reasons choose to stick with unutilized capacity when sales are decreasing. As such, community social capital is a socio-economic factor that might affect managerial resource adjustment decisions via different channels. Methods: The method of the present research is descriptive-correlation because in this study the principle is to make hypotheses, test them, explain the relationships between phenomena and also analyze the dependent variable based on independent variables.For this purpose, we have collected the financial information related to 191 companies listed in Tehran Stock Exchange during the period of 2012 to 2018 and measure the community social capital index by different provinces of the country. In order to measure the community social capital index, we used the components of participation rate in elections, labor force participation rate, density of social networks and density of non-profit organizations by quarterly method. We also use multiple linear regression patterns to test research hypotheses. Results: Research findings indicate that, there is a significant relationship between community social capital and the degree of stickiness in selling, general and administrative costs. In this regard community social capital significantly increases the degree of stickiness in selling, general and administrative costs. The findings also show that, there is no significant relationship between community social capital and the degree of stickiness in the total operating costs and cost of goods sold. Hence, we observe an issue related to the personal motivations of managers and their opportunistic behaviors. Conclusion: Based on the findings of the study, it can be argued thatcommunity social capital restrains managers from taking opportunistic resource adjustment decisions that would reduce costs stickiness. And this leads to an increase in the degree of costs stickiness. This article confirms the important role of managerial opinion in cost behavior and how local environmental factors show differences in firm’s cost behavior.Amirhossein RastegariReza HesarzadehMohamadjavad SaeyShahid Bahonar University of Kermanarticlecost behaviorcost stickinesssocial capitalmanagerial opportunismAccounting. BookkeepingHF5601-5689FAمجله دانش حسابداری, Vol 12, Iss 1, Pp 19-44 (2021)
institution	DOAJ
collection	DOAJ
language	FA
topic	cost behavior cost stickiness social capital managerial opportunism Accounting. Bookkeeping HF5601-5689
spellingShingle	cost behavior cost stickiness social capital managerial opportunism Accounting. Bookkeeping HF5601-5689 Amirhossein Rastegari Reza Hesarzadeh Mohamadjavad Saey The Impact of Community Social Capital on Asymmetric Behavior of Cost
description	Objective: The purpose of this research is investigating the effect of community social capital on asymmetric behavior of cost. Social capital refers to features of social organization such as norms and networks that simplify cooperation and harmony for mutual benefit. Community social capital captures the strength of cooperative norms and the density of social networks in a region. Cost stickiness is a behavioral property of cost that is substantially based on managerial decisions. In this case of cost behavior, managers are quick to expand resources when demand is increasing, but for a variety of reasons choose to stick with unutilized capacity when sales are decreasing. As such, community social capital is a socio-economic factor that might affect managerial resource adjustment decisions via different channels. Methods: The method of the present research is descriptive-correlation because in this study the principle is to make hypotheses, test them, explain the relationships between phenomena and also analyze the dependent variable based on independent variables.For this purpose, we have collected the financial information related to 191 companies listed in Tehran Stock Exchange during the period of 2012 to 2018 and measure the community social capital index by different provinces of the country. In order to measure the community social capital index, we used the components of participation rate in elections, labor force participation rate, density of social networks and density of non-profit organizations by quarterly method. We also use multiple linear regression patterns to test research hypotheses. Results: Research findings indicate that, there is a significant relationship between community social capital and the degree of stickiness in selling, general and administrative costs. In this regard community social capital significantly increases the degree of stickiness in selling, general and administrative costs. The findings also show that, there is no significant relationship between community social capital and the degree of stickiness in the total operating costs and cost of goods sold. Hence, we observe an issue related to the personal motivations of managers and their opportunistic behaviors. Conclusion: Based on the findings of the study, it can be argued thatcommunity social capital restrains managers from taking opportunistic resource adjustment decisions that would reduce costs stickiness. And this leads to an increase in the degree of costs stickiness. This article confirms the important role of managerial opinion in cost behavior and how local environmental factors show differences in firm’s cost behavior.
format	article
author	Amirhossein Rastegari Reza Hesarzadeh Mohamadjavad Saey
author_facet	Amirhossein Rastegari Reza Hesarzadeh Mohamadjavad Saey
author_sort	Amirhossein Rastegari
title	The Impact of Community Social Capital on Asymmetric Behavior of Cost
title_short	The Impact of Community Social Capital on Asymmetric Behavior of Cost
title_full	The Impact of Community Social Capital on Asymmetric Behavior of Cost
title_fullStr	The Impact of Community Social Capital on Asymmetric Behavior of Cost
title_full_unstemmed	The Impact of Community Social Capital on Asymmetric Behavior of Cost
title_sort	impact of community social capital on asymmetric behavior of cost
publisher	Shahid Bahonar University of Kerman
publishDate	2021
url	https://doaj.org/article/034460c7ebbb465280f6a814eea7d4e1
work_keys_str_mv	AT amirhosseinrastegari theimpactofcommunitysocialcapitalonasymmetricbehaviorofcost AT rezahesarzadeh theimpactofcommunitysocialcapitalonasymmetricbehaviorofcost AT mohamadjavadsaey theimpactofcommunitysocialcapitalonasymmetricbehaviorofcost AT amirhosseinrastegari impactofcommunitysocialcapitalonasymmetricbehaviorofcost AT rezahesarzadeh impactofcommunitysocialcapitalonasymmetricbehaviorofcost AT mohamadjavadsaey impactofcommunitysocialcapitalonasymmetricbehaviorofcost
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The Impact of Community Social Capital on Asymmetric Behavior of Cost

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