Active Cost Management in Banks: Evidence of Sticky Costs in Argentina, Brazil and Canada

Porporato, Marcela; Werbin, Eliana

doi:10.2139/ssrn.1659228

Cited by 25 publications

(26 citation statements)

References 12 publications

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“…They found evidence that SG&A costs increased 0.59% every 1% increase in sales, but fell only 0.45% every 1% decrease in sales, on average. Özkaya and Yükcü () provided evidence of stickiness in both SG&A costs and total operating costs in non‐financial Turkish firms, while Porporato and Werbin () found the existence of sticky costs in the banking sectors of Argentina, Brazil, and Canada. Calleja et al.…”

Section: Literature Reviewmentioning

confidence: 99%

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Do Accruals Earnings Management Constraints and Intellectual Capital Efficiency Trigger Asymmetric Cost Behaviour? Evidence from Australia

Yang

2018

Australian Accounting Review

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This study examines whether accruals earnings management constraints and intellectual capital (IC) efficiency affect asymmetric cost behaviour by analysing data for the 1990 to 2016 period on firms listed on the Australian Securities Exchange. The analysis reveals that, on average, anti‐sticky cost behaviour occurs when firms have limited ability to engage in accrual earnings management to manipulate earnings in the current year. Further, IC efficiency – particularly human capital efficiency – increases the degree of cost stickiness. This study also finds that the degree of asymmetric cost behaviour is more pronounced in the post‐International Financial Reporting Standards (IFRS) period than in the pre‐IFRS period. The results suggest that the increased asymmetric cost behaviour in the post‐IFRS period derives from higher IC efficiency relative to the pre‐IFRS period. This study presents important implications for external stakeholders because they can consider the extent of earnings management constraints and the extent of firms’ IC efficiency as the determinants of asymmetric cost behaviour when assessing firms’ cost behaviour.

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Section: Literature Reviewmentioning

confidence: 99%

“…), as well as in other countries (e.g., Calleja et al. ; Porporato and Werbin ). However, asymmetric cost behaviour is still in its infancy and there is significant potential for expansion (Banker et al.…”

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confidence: 93%

Do Accruals Earnings Management Constraints and Intellectual Capital Efficiency Trigger Asymmetric Cost Behaviour? Evidence from Australia

Yang

2018

Australian Accounting Review

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“…To explain empirically how costs behave when management adjusts its costs and makes deliberate decisions as responding to certain factors [10], this evidence ignores the model of fixed and variable cost that assumed a mechanical relation between costs and activity change, and argues that the traditional model of cost behavior is not a fit framework to determine a benefit of the current period for future. Kama and Weiss [11] found the deliberate decisions to lessen the degree of costs sticky rather than induce cost sticky.…”

Section: Introductionmentioning

confidence: 99%

A Non-Linear Regression Modeling is used for Asymmetry Co-Integration and Managerial Economics in Iraqi Firms

Azeez¹,

Han²,

Mahmood³

2017

ijacsa

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Abstract-This paper analyzes the cost asymmetry through managerial expectations in a nonlinear regression function. Two development determinants, asymmetry co-integration and managerial expectations are also considered. The results revealed that managerial expectation had an impact on the wholesale cost asymmetry response. The managerial optimism is pronounced that show cost asymmetry response for sales, and inventory assets increased higher than decreased with the changing of the expectation basic coefficient and the values of contract parameters. Finally, the impacts of the managerial expectations, cost basic coefficient, and values of the contract parameters are analyzed for illustrating the results of the proposed nonlinear models with the help of numerical experiments. The research examined the short-run and the long-run effects of asymmetry co-integration and managerial expectation changes on the cost behavior in Iraq using the nonlinear regression function.

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“…Weidenmier (2003) Anderson et al (2004), Porporato and Werbin (2010), menyatakan bahwa business environment, macro economic condition seperti infl asi dan pertumbuhan ekonomi akan mempengaruhi komposisi total biaya dan pertimbangan manajerial berkaitan penggunaan utilisasi.…”

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“…Penelitian ini dilakukan untuk membuktikan secara empiris penelitian Weidenmier dan Subramanyan (2003), Anderson et al (2003), Windyastuti dan Biyanto (2005), Banker (2006), Porporato and Werbin (2010), Teruya et al (2010), Yasukata (2011), Pervan and Pervan (2012) yang menyatakan bahwa salah satu komponen dari lingkungan luar perusahaan yang berupa pertumbuhan ekonomi mempengaruhi tingkat sticky cost pada suatu perusahaan. Apakah terdapat perilaku sticky cost pada biaya penjualan, administrasi dan umum, serta menguji kondisi dan situasi yang berpengaruh terhadap derajat stickiness dengan menggunakan faktor pertumbuhan ekonomi.…”

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Perilaku Sticky Cost Pada Biaya Penjualan, Administrasi Dan Umum (Studi Pada Perusahaan Manufaktur Yang Terdaftar Di Bursa Efek Indonesia Periode 2009-2012)

Apriliawati

Nugrahanti

2015

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Active Cost Management in Banks: Evidence of Sticky Costs in Argentina, Brazil and Canada

Cited by 25 publications

References 12 publications

Do Accruals Earnings Management Constraints and Intellectual Capital Efficiency Trigger Asymmetric Cost Behaviour? Evidence from Australia

Do Accruals Earnings Management Constraints and Intellectual Capital Efficiency Trigger Asymmetric Cost Behaviour? Evidence from Australia

A Non-Linear Regression Modeling is used for Asymmetry Co-Integration and Managerial Economics in Iraqi Firms

Perilaku Sticky Cost Pada Biaya Penjualan, Administrasi Dan Umum (Studi Pada Perusahaan Manufaktur Yang Terdaftar Di Bursa Efek Indonesia Periode 2009-2012)

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