Download this Paper Open PDF in Browser

Have Estimates of Cost Stickiness Changed Across Listing Cohorts?

28 Pages Posted: 10 May 2017 Last revised: 3 Nov 2017

Thomas R. Loy

University of Bayreuth - Business Administration

Sven Hartlieb

University of Bamberg

Date Written: November 2, 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 call for the use of listing cohort-specific slopes to allow for cohort-specific estimates of cost stickiness in future 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? (November 2, 2017). Available at SSRN: https://ssrn.com/abstract=2966190 or http://dx.doi.org/10.2139/ssrn.2966190

Thomas 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
72
Rank
283,742
Abstract Views
207