الفهرس 
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Abstract
The traditional cost behavior model (linear cost–sales relationship) is not suitable to measure cost behavior. It was found that certain cost categories were “sticky”-they decline less in response to sales decrease than they rise for equivalent sales increase, this means that the relationship between cost and activity is not linear. A high degree of cost stickiness leads to the existence of excess resources that are useless to the firm and that results in lower firm’s earnings. Therefore, to avoid this from happening, firms need to decrease the degree of cost stickiness.
Accordingly, the current study indicated that when managers seek to achieve earnings targets by avoiding losses and avoiding earnings decrease, they will be encouraged to make downward resources management decisions when sales decrease to achieve these earnings targets. This will result in decreasing the degree of cost stickiness. Thus, the main objective of this study is to measure the degree of cost stickiness when managers achieve earnings targets. Additionally, as achieving earnings targets by cutting resources when sales decrease is often seen as a form of real earnings management. Therefore, this study also investigates whether managers will be encouraged to take the decision of achieving earnings targets. This was done by testing the effect of achieving earnings targets on firm’s future operating performance in order to test whether it is a form of effective earnings management or ineffective earnings management.
The researcher also carried out a questionnaire directed to managers working in manufacturing firms listed on the stock exchange. This questionnaire was used to indicate whether managers will choose to achieve earnings targets when they want to decrease the degree of cost stickiness, and whether their different behaviors will affect their decision to do so. Additionally, the researcher constructed an empirical model in order to test the validity or the non-validity of the research hypotheses. This empirical study was based on data obtained from the financial statements of manufacturing firms listed on the Egyptian stock exchange from year 2010 to year 2019.
The questionnaire responses viewed that managers will decide to achieve earnings targets when they want to decrease the degree of cost stickiness, regardless of their different behaviors. Additionally, it was found that achieving earnings targets is an effective form of earnings management that improves firm’s future operating performance, thus managers will be motivated to take this decision. Also, it was concluded from the results of this study that when managers seek to achieve earnings targets, the degree of cost stickiness is decreased.