Are Operating Lease Costs Sticky for Retail Firms?

Gray, David L.

doi:10.1108/s1474-787120200000032003

Cited by 3 publications

(2 citation statements)

References 17 publications

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“…However, these costs display sticky cost behavior when controlling for a successive decrease in sales, performance, and economic growth. Further, Gray (2020) analyzed the cost behavior of operating lease expenses. The findings concluded that operating lease expenses display cost stickiness as they rise by 0.891% per 1% increase in sales, but they decline by 0.116% per 1% decrease in sales.…”

Section: Evidence On Sticky Cost Behaviormentioning

confidence: 99%

“…The majority of the literature related to sticky cost behavior has been conducted to test the existence of sticky cost behavior and its determinants (e.g., Chen et al, 2012;Kama and Weiss, 2013;Cannon, 2014;Holzhacker et al, 2015;Kitching et al, 2016;Cohen et al, 2017;Kwon, 2018;Parbowo et al, 2018;Chung et al, 2019;Gray, 2020). These studies concluded that some kinds of costs display asymmetric responses towards changes in activity level asserting the prevalence of sticky cost behavior.…”

Section: Introductionmentioning

confidence: 99%

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Does Sticky Cost Behavior Affect Earnings Quality? Evidence From Egypt

Wahdan

Ahmed

Alsayed

2021

ijafr

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This paper seeks to extend the literature on cost behavior by providing additional evidence on sticky cost behavior in developing countries namely Egypt. Moreover, it aims to determine to what extent sticky cost behavior affects earnings quality. The paper depends on a sample consists of 38 listed firms in the Egyptian Exchange over the period from 2004 to 2017. The findings reveal that total costs respond asymmetrically to the equivalent change in sales in six of the nine examined sectors. Furthermore, both patterns of sticky cost behavior, stickiness and anti-stickiness, negatively affect earnings quality. Therefore, managers, investors, and managerial accountants should take into account sticky cost behavior when making their decisions. This study contributes to the stream of research that integrates managerial accounting with financial accounting by combining sticky cost behavior with earnings quality. In addition, it extends the line of research related to the impacts of sticky cost behavior. Moreover, it gives new evidence on sticky cost behavior and its impacts from one of emerging countries.

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Section: Evidence On Sticky Cost Behaviormentioning

confidence: 99%