Download this Paper Open PDF in Browser

Have Estimates of Cost Stickiness Changed Across Listing Cohorts?

14 Pages Posted: 10 May 2017 Last revised: 11 May 2017

Thomas R. Loy

University of Bayreuth - Business Administration

Sven Hartlieb

University of Bamberg

Date Written: May 10, 2017

Abstract

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

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

Thomas R. Loy (Contact Author)

University of Bayreuth - Business Administration ( email )

Universitätsstr. 30
Bayreuth, 95447
Germany

HOME PAGE: http://www.wp.uni-bayreuth.de

Sven Hartlieb

University of Bamberg ( email )

Kirschaeckerstrasse 39
Bamberg, 96045
Germany

Paper statistics

Downloads
44
Abstract Views
138