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Exploratory Analysis of Cost Variation in Unlisted Companies : Focusing on Cost Stickiness and Cost Anti-stickiness

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  • SHINKAI, Takahide

Abstract

The purpose of this study is to focus on cost stickiness and cost anti-stickiness and, by using financial data from unlisted companies to conduct quantitative analysis, to uncover aspects of cost variation and their underlying mechanisms among the group of unlisted companies that previous research has yet to clarify. Analyzing a large-scale financial data set from unlisted companies, it was confirmed that the results, both for samples excluding the construction and financial sectors and for samples including only the construction sector, did not contradict the findings of Anderson et al. (2003) and Banker et al. (2014). It was also concurrently verified that these results are consistent with the estimated outcomes of empirical studies focusing on publicly listed companies in Japan. This research, which analyzed a large-scale financial panel data set of unlisted companies, is likely the first of its kind in the world. Through this study, it is believed that we have been able to present the potential for expanding existing research on cost variability, which has predominantly been analyzed using published data from listed companies.

Suggested Citation

  • SHINKAI, Takahide, 2023. "Exploratory Analysis of Cost Variation in Unlisted Companies : Focusing on Cost Stickiness and Cost Anti-stickiness," TDB-CAREE Discussion Paper Series E-2023-01, Teikoku Databank Center for Advanced Empirical Research on Enterprise and Economy, Graduate School of Economics, Hitotsubashi University.
    • Handle: RePEc:hit:tdbcdp:e-2023-01
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    File URL: https://hermes-ir.lib.hit-u.ac.jp/hermes/ir/re/80955/070careeDP-E-2301.pdf
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    References listed on IDEAS

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    1. Itay Kama & Dan Weiss, 2013. "Do Earnings Targets and Managerial Incentives Affect Sticky Costs?," Journal of Accounting Research, Wiley Blackwell, vol. 51(1), pages 201-224, March.
    2. Mark C. Anderson & Rajiv D. Banker & Surya N. Janakiraman, 2003. "Are Selling, General, and Administrative Costs “Sticky”?," Journal of Accounting Research, Wiley Blackwell, vol. 41(1), pages 47-63, March.
    3. Banker, Rajiv D. & Byzalov, Dmitri & Chen, Lei (Tony), 2013. "Employment protection legislation, adjustment costs and cross-country differences in cost behavior," Journal of Accounting and Economics, Elsevier, vol. 55(1), pages 111-127.
    4. Clara Xiaoling Chen & Hai Lu & Theodore Sougiannis, 2012. "The Agency Problem, Corporate Governance, and the Asymmetrical Behavior of Selling, General, and Administrative Costs," Contemporary Accounting Research, John Wiley & Sons, vol. 29(1), pages 252-282, March.
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    Keywords

    cost stickiness; anti-cost stickiness; unlisted companies; cost behavior;
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