Product Market Competition, Asymmetric Cost Behavior, Managerial Expectation about Future Sales: Analysis of the whole Business Environment of Iran

Asymmetric cost behavior, in recent years, has been of interest to researchers. By increasing demand, cost increases, but by decreasing demands, cost won’t be decreased equally. Decline in demands might be due to undermine the competitive position which prompt Investment in research and development and other processes of value chain. Thus, product market competition affects asymmetric cost behavior. For empirical review, data related to 91 firm in Tehran stock exchange, during 2006-2015 were analyzed. The whole business Environment of Iran were considered in order to measurement of product market competition. The results indicate that with the increase of product market competition, asymmetric cost behavior will be increased and managerial optimism about future sales will raise the effect of product competition on asymmetric cost behavior.