Sticky Cost Behavior: Evidence from Small and Medium Sized Companies

Accounting & Finance, Forthcoming

36 Pages Posted: 2 Mar 2013 Last revised: 18 Mar 2013

See all articles by Nicola Dalla Via

Nicola Dalla Via

Free University of Bozen-Bolzano; Erasmus University Rotterdam (EUR) - Rotterdam School of Management (RSM)

Paolo Perego

Free University of Bozen-Bolzano; RSM Erasmus University

Date Written: March 14, 2013

Abstract

This paper investigates whether cost stickiness occurs in small and medium sized companies using a sample of Italian non-listed and listed firms during the period 1999-2008. Our findings show that cost stickiness emerges only for the total cost of labor and not for selling, general, and administrative (SG&A) costs, cost of goods sold and operating costs. Stickiness of operating costs is only detected in a sample of listed companies. We further contribute to the literature on sticky cost behavior by discussing critical issues associated to the extant approach of empirical analysis and interpretation of sticky cost behavior.

Keywords: Cost stickiness, Cost behavior, Cost asymmetry, SMEs, Italian firms

JEL Classification: M41

Suggested Citation

Dalla Via, Nicola and Perego, Paolo, Sticky Cost Behavior: Evidence from Small and Medium Sized Companies (March 14, 2013). Accounting & Finance, Forthcoming. Available at SSRN: https://ssrn.com/abstract=2226399 or http://dx.doi.org/10.2139/ssrn.2226399

Nicola Dalla Via (Contact Author)

Free University of Bozen-Bolzano ( email )

Faculty of Economics & Management
piazza Università, 1
Bozen-Bolzano, BZ 39100
Italy

Erasmus University Rotterdam (EUR) - Rotterdam School of Management (RSM) ( email )

P.O. Box 1738
3000 DR Rotterdam, 3000 DR
Netherlands

Paolo Perego

Free University of Bozen-Bolzano ( email )

Faculty of Economics & Management
Piazza dell'Universita' 1
Bozen-Bolzano, 39100
Italy

HOME PAGE: http://www.unibz.it/en/faculties/economics-management/academic-staff/person/38679-paolo-perego

RSM Erasmus University ( email )

Department of Accounting & Control
Burg. Oudlaan 50
Rotterdam, 3062PA
Netherlands

HOME PAGE: http://www.rsm.nl/pperego

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