Sticky Cost Behavior: Evidence from Small and Medium Sized Companies
Accounting & Finance, Forthcoming
36 Pages Posted: 2 Mar 2013 Last revised: 18 Mar 2013
Date Written: March 14, 2013
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: Suggested Citation