Investigating the Impact of Social Capital on Cost Stickiness: Evidence from the Tehran Stock Exchange

Cost stickiness is a situation in which managers tend to increase production capacity while increasing sales, but if demand decreases, they do not want to reduce their unused capacity. In this research, the aim is to investigate the effect of social capital component on asymmetric cost behavior. For this purpose, companies listed on the Tehran Stock Exchange during the years 2002 to 2020 customers in 98 companies )or in other words 1666 years- the company( has been examined. The result of testing the hypothesis of this study showed that there is a positive and significant relationship between social capital and cost stickiness. In other words, increasing social capital increases cost stickiness. From the results of this study, it can be inferred that managers' decisions change when the components of social capital increase. In fact, with the increase in social capital, managers are less inclined to reduce costs during periods of recession because they understand the existence of strong external participation norms and base their decisions on avoiding social punishment.