14 Pages Posted: 10 May 2017 Last revised: 11 May 2017
Date Written: May 10, 2017
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 recommend the use of listing cohort-fixed effects in future cross-sectional cost stickiness research.
Keywords: Asymmetric Cost Behavior; Listing Cohorts; Adjustment Costs
JEL Classification: D22, M41
Suggested Citation: Suggested Citation
Loy, Thomas R. and Hartlieb, Sven, Have Estimates of Cost Stickiness Changed Across Listing Cohorts? (May 10, 2017). Available at SSRN: https://ssrn.com/abstract=2966190 or http://dx.doi.org/10.2139/ssrn.2966190