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Asymmetric cost behavior of family firms: Socio-emotional Wealth perspective; Cost Stinckness
Farshad Sabzalipour PhD 1, Ghareibeh Esmailikia2 , Elahe Arzani3
1- Assistant Professor of Accounting, Ilam University, Ilam, Iran. (Corresponding Author) , f.sabzalipour@ilam.ac.ir
2- Associate Professor of Accounting, Ilam University, Ilam, Iran. Gh.esmailikia@ilam.ac.ir
3- MSc of Management Accounting, Ilam University, Ilam, Iran. (elahe.arzani0948@gmail.com)
Abstract:   (272 Views)
The management accounting literature traditionally focuses on the economic explanation of asymmetric cost behavior. While non-economic considerations likely also a role in explaining resource adjustment decisions. The socio-emotional wealth perspective refers to non-financial aspects such as the identity and ability to exercise influence of the owners that satisfy the emotional needs of the family owners. In this regard, the cost behavior of family firms is the result of non-economic goals such as protecting the socio-emotional wealth of family owners, and these goals will lead to asymmetric cost behavior. The pourpose of the present research is to examine the asymmetric cost behavior in family companies according to the socioemotional wealth perspective. In this regard, the data from 154 firms listed on Tehran Stock Exchange during the period from 2016 to 2021 has been used. Hypotheses have been tested using multivariate regression models. The findings indicate that family firms have greater costs than non-family firms. In addition, the findings showed that family firms with a high percentage of family ownership and family CEOs have more cost stickiness than non-family firms. On the other hand, the presence of a high proportion of family managers on the board does not lead to an increase in the cost stickiness of family firms compared to non-family firms. Understanding how family firms adjust their costs in response to changes in demand is useful for investors and analysts who forecast the future earnings and cash flows of these firms.
Keywords: Asymmetric cost behavior, Family firms, Socio-Emotional Wealth Perspective.
Full-Text [PDF 1233 kb]   (4 Downloads)    
Type of Study: Research | Subject: Special
Received: 2024/01/13 | Accepted: 2024/05/25
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