THE EFFECT OF COMPANY CHARACTERISTICS ON THE PATTERN OF ASYMMETRIC COST BEHAVIOUR AND ITS REFLECTION ON THE CONTINUITY OF PROFITS
This study examines the impact of firm characteristics on asymmetric cost behaviour patterns and their implications for profit sustainability. The study uses a quantitative approach to examine data from 12 industrial companies listed on the Iraq Stock Exchange between 2012 and 2021. The study varia...
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| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
| Published: |
FINTECH Alliance LLC
2025-04-01
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| Series: | Фінансово-кредитна діяльність: проблеми теорії та практики |
| Subjects: | |
| Online Access: | https://fkd.net.ua/index.php/fkd/article/view/4665 |
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| Summary: | This study examines the impact of firm characteristics on asymmetric cost behaviour patterns and their implications for profit sustainability. The study uses a quantitative approach to examine data from 12 industrial companies listed on the Iraq Stock Exchange between 2012 and 2021.
The study variables were quantitatively assessed according to the models and dimensions established in the literature. The company characteristics variable was measured through five dimensions: company size, age, financial leverage, working capital, and market-to-book ratio. The asymmetric cost behaviour pattern was measured using the ABJ model, and the profit sustainability variable was calculated using the self-regression model for current and previous profits. The validity of the data for statistical analysis was confirmed using the SPSS statistical package by testing for normal distribution, linearity, and lack of multicollinearity. The research hypotheses were tested using linear regression.
The study revealed that sticky cost behaviour is prevalent among Iraqi enterprises, and the overall features of these organizations positively influence both asymmetric cost behaviour and profit sustainability. The asymmetric cost behaviour pattern enhances profit sustainability, whereas corporate attributes influence profit sustainability directly, independent of the asymmetric cost behaviour pattern.
The research recommends the necessity of studying and analyzing the asymmetric cost behaviour pattern to understand its influence on business size, as well as focusing on enhancing company characteristics that management can improve, such as determining the optimal size of working capital and the financial leverage rate in light of the optimal financing structure study. This would enhance economic performance, increase profitability opportunities, and ensure continuity and sustainability. It would also improve the company's growth opportunities by delivering positive messages to financial markets to boost stock prices in the financial market.
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| ISSN: | 2306-4994 2310-8770 |