A Study of the Moderating Effect of Expected Future Sale and Capacity Utilization on the Relation between Costs Behavior and Changes of the Bonus of Directors

Asymmetric relation between performance and bonus is one of the most important topics in accounting and finance in recent years. Asymmetric relation produced by costs behavior and has attracted considerable attention. The characterization of effective parameter and their moderating effects on this relation is of vital importance. In the present work the moderating effect of expected future sale and capacity utilization on the relation between costs behavior and the changes in the bonus of directors in Food, Drug, Chemical, Metals and Car industries which listed in TSE were investigated. In order to, 58 companies has been investigated during 1387-1391, by panel data analysis method. Our findings showed only the capacity utilization had effect on this relation. The changes of bonus was more sensitive to increase in the return on assets than decrease it. The return on assets was produced by normal and non-normal costs behavior. Our findings showed in the absent of bonus committee as a corporate governance, the companies couldnt properly interpreted the relation between sale and costs and their moderator effects on the time of director's bonus payment.