The effect of peers' decisions on managers' decisions about sticky cost - the modified role of institutional investment: an empirical study

The research aimed to test the extent to which the Firms decisions regarding the levels of sticky cost are affected by the decisions of the peers in this regard, in addition to examining the modified role of institutional investment as a control mechanism on the relationship between the influence of peers and the levels of sticky cost. The peer effects model was applied to a sample of 93 Firm registered on the Egyptian Stock Exchange during the period from 2013 to 2020, with a total of 737 observations.
The results of the study showed that there is a significant impact of the decisions of the peers regarding the levels of sticky cost on the decisions of the firm at the level of the sample as a whole, The results of the study also showed that there is a significant impact of the decisions of the peers regarding the levels of sticky cost on the decisions of the firm at the level of large and small-sized firms ,as for the level of high-profit and low-profit Firms, the results showed that there is a significant direct effect at the level of low-profit Firms only .
The results of testing the effect of institutional investment as an interactive variable on the relationship between the peers regarding the levels of sticky cost and the decisions of the firm showed that there was a Significant impact of institutional investment on this relationship at the level of the sample as a whole, At the level of large and small-sized firms, it was found that institutional investment as an interactive variable has a significant effect in the context of large firms only. As for the firms with high profitability and the firms with low profitability, it was found that there was no significant effect of institutional investment.