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Corporate Social Responsibility and Asymmetric Cost Behavior Under the Influence of Corporate Governance

Author

Listed:
  • Anastasia Filiou
  • Apostolos Ballas
  • Christos Tzovas

Abstract

A sample of European firms engaging in corporate social responsibility (CSR) activities is investigated in this study with regard the occurrence of asymmetric cost behavior in their operating expenses under the umbrella of corporate governance structures. The empirical findings of the paper provide evidence that operating expenses exhibit cost stickiness in the case of firms with stronger engagement in CSR activities. The firms with high intensity of CSR engagement seem to exhibit less operating cost stickiness under stronger corporate governance mechanisms. The findings of this study suggest that in addition to economic factors, managers’ choices regarding adjusting costs may be influenced by corporate social responsibility engagement and governance mechanisms which could thus help explain operating costs’ behavior of European firms.

Suggested Citation

  • Anastasia Filiou & Apostolos Ballas & Christos Tzovas, 2026. "Corporate Social Responsibility and Asymmetric Cost Behavior Under the Influence of Corporate Governance," Review of European Studies, Canadian Center of Science and Education, vol. 17(2), pages 108-108, January.
    • Handle: RePEc:ibn:resjnl:v:17:y:2026:i:2:p:108
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    References listed on IDEAS

    as
    1. Sandra A. Waddock & Samuel B. Graves, 1997. "The Corporate Social Performance–Financial Performance Link," Strategic Management Journal, Wiley Blackwell, vol. 18(4), pages 303-319, April.
    2. Shleifer, Andrei & Vishny, Robert W, 1997. "A Survey of Corporate Governance," Journal of Finance, American Finance Association, vol. 52(2), pages 737-783, June.
    3. Mark C. Anderson & Rajiv D. Banker & Surya N. Janakiraman, 2003. "Are Selling, General, and Administrative Costs “Sticky”?," Journal of Accounting Research, John Wiley & Sons, Ltd., vol. 41(1), pages 47-63, March.
    4. María Inés Stimolo & Marcela Porporato, 2020. "How different cost behaviour is in emerging economies? Evidence from Argentina," Journal of Accounting in Emerging Economies, Emerald Group Publishing Limited, vol. 10(1), pages 21-47, January.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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