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Have estimates of cost stickiness changed across listing cohorts?

Author

Listed:
  • Thomas R. Loy

    (University of Bayreuth)

  • Sven Hartlieb

    (University of Bamberg)

Abstract

While the discussion of changes in financial accounting properties over time is already well-established, there is a lack of evidence whether changing firm compositions in empirical samples might bias cost stickiness research. We document that with each additional listing cohort, the U.S. public firm universe becomes more knowledge-intensive and, at the same time, more cost sticky. Higher reliance on temporary labor by newer listing cohorts partly mitigates this development. Our results call for the use of listing cohort-specific slopes to allow for cohort-specific estimates of cost stickiness in future research.

Suggested Citation

  • Thomas R. Loy & Sven Hartlieb, 2018. "Have estimates of cost stickiness changed across listing cohorts?," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 29(2), pages 161-181, August.
    • Handle: RePEc:spr:jmgtco:v:29:y:2018:i:2:d:10.1007_s00187-018-0263-3
    DOI: 10.1007/s00187-018-0263-3
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    References listed on IDEAS

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    Cited by:

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    2. Cook, Douglas O. & Kieschnick, Robert & Moussawi, Rabih, 2021. "Operating lease obligations and corporate cash management," Journal of Corporate Finance, Elsevier, vol. 69(C).
    3. Mabel D. Costa & Ahsan Habib & Md. Borhan Uddin Bhuiyan, 2021. "Financial constraints and asymmetric cost behavior," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 32(1), pages 33-83, March.
    4. Ibrahim, Awad Elsayed Awad & Ali, Hesham & Aboelkheir, Heba, 2022. "Cost stickiness: A systematic literature review of 27 years of research and a future research agenda," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 46(C).
    5. Irsa, Wolfram & Székely, Csaba, 2021. "Analysis of Overhead Costs Management in Companies," Proceedings of the ENTRENOVA - ENTerprise REsearch InNOVAtion Conference (2021), Hybrid Conference, Zagreb, Croatia, in: Proceedings of the ENTRENOVA - ENTerprise REsearch InNOVAtion Conference, Hybrid Conference, Zagreb, Croatia, 9-10 September 2021, pages 23-33, IRENET - Society for Advancing Innovation and Research in Economy, Zagreb.

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    More about this item

    Keywords

    Asymmetric cost behavior; Listing cohorts; Adjustment costs;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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