Banking competition and cost stickiness

Lee, Eunsuh; Kim, Chaehyun; Leach-López, Maria A.

doi:10.1016/j.frl.2020.101859

Cited by 14 publications

(9 citation statements)

References 18 publications

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“…Literatur mengenai perilaku biaya tradisional menjelaskan bahwa terdapat hubungan mekanikal yang simetris antara perubahan aktivitas dan perubahan biaya. Akan tetapi penelitian terkini mengenai perilaku biaya (Anderson et al, 2003;Banker et al, 2018;Ibrahim et al, 2022;Jin & Wu, 2021;Lee et al, 2021;Prabowo et al, 2018;Restuti et al, 2022) mendokumentasikan adanya perilaku biaya yang tidak simetris (stickiness dan anti-stickiness) yang tidak konsisten dengan pandangan tradisional. Adanya asimetri biaya tersebut karena adanya keputusan manajemen yang melakukan penyesuaian biaya seperti biaya mempekerjakan dan memberhentikan tenaga kerja dan biaya instalasi serta disposal untuk peralatan (Banker, Byzalov, & Chen, 2013) Anderson et al (2003) menyatakan cost stickiness muncul ketika biaya yang naik akibat kenaikan volume aktivitas tidak diikuti dengan penurunan yang sama ketika volume aktivitas turun.…”

Section: Cost Stickinessunclassified

Penghindaran Pajak, Karakteristik Dewan Komisaris dan Cost Stickiness

Restuti¹

2023

persi

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This study aims to examine the relationship between tax avoidance and cost stickiness. This study also tests whether the relationship between tax avoidance and cost stickiness varies with the characteristics of the board of commissioners. The characteristics of the board of commissioners used are the size of the board of commissioners and the educational background of the board of commissioners. The study was conducted on listed firms on Indonesia Stock Exchange for the period 2013-2017. The results showed that there was a positive relationship between tax avoidance and cost stickiness. This study did not find enough evidence that the relationship between tax avoidance and stickiness costs was more positive in firms with a small size of the board of commissioners compared to large ones. Firms with a small size of board of commissioners indeed show anti-sticky costs and tax avoidance is not related to cost stickiness, but firms with a large board of commissioners show that there is a positive relationship between tax avoidance and cost stickiness. This study also found that in groups with small proportions of economic education / business background of board members there was a positive relationship between tax avoidance and cost stickiness, whereas in large groups there was no cost stickiness and found no relationship between tax avoidance and cost stickiness.

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Section: Cost Stickinessunclassified

Penghindaran Pajak, Karakteristik Dewan Komisaris dan Cost Stickiness

Restuti¹

2023

persi

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“…They found that cost stickiness is higher due to competition pressure. Lee et al (2021) explored the relationship between banking competition and cost stickiness. They revealed that banking competition increases the cost stickiness of non-financial firms by intensifying competitive pressure and providing credit facilities.…”

Section: Cost Stickinessmentioning

confidence: 99%

Does Managerial Ability Lead to Different Cost Stickiness Behavior? Evidence from ASEAN Countries

Restuti

Gani

Shauki

et al. 2022

IJFS

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This study aims to test cost stickiness behavior under different managerial ability levels. Managerial ability plays an important role in resource-related decision making. Previous cost stickiness research assumes that managers exhibit similar abilities to manage resources. However, managers with different managerial abilities may make different resource decisions, which leads to different cost stickiness levels. More able managers can manage resources efficiently and deal with resource shortages. This study also tests the effects of environmental uncertainty on cost stickiness under different managerial ability levels. Managers’ resource decisions must consider environmental uncertainty to generate optimal returns. More able managers are more willing to take risks and manage resources efficiently to deal with uncertainty. Meanwhile, less able managers tend to retain resources to cope with environmental uncertainty. We ran the panel regression analysis of 19,612 listed firm-year observations in ASEAN countries from 2013 to 2019. The results show that firms led by less able managers exhibit cost stickiness. Less able managers cannot manage resources efficiently and are more likely to retain resources than make costly adjustments. Further, the effect of environmental uncertainty on cost stickiness is stronger in firms led by less able managers. Less able managers tend to retain resources when sales decline.

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“…Managers' decisions are affected by many factors that increase adjustment costs, such as demand uncertainty and firms' future value creation (Anderson et al, 2013; Banker et al, 2011). In addition, factors such as corporate social responsibility (Habib & Hasan, 2016), dividend policy (He et al, 2020), banking competition (E. Lee et al, 2021), and corporate strategy (Ballas et al, 2022) affect managers' decisions in adjusting resources. A good corporate governance system can reduce information asymmetry by restricting management's opportunistic incentives, thus inhibiting cost stickiness by mitigating inefficient resource allocations.…”

Section: Introductionmentioning

confidence: 99%

Investor visits to corporate sites and cost stickiness

Yao

Fan

et al. 2023

Financ Manag Account

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A corporate site visit is an effective way to obtain information on a firm. Most studies focus on the information advantages of corporate site visits, but evidence of their impact on firm operations is limited. In this paper, we investigate whether investors’ corporate site visits affect cost stickiness. Using data on investor corporate site visits to Chinese listed firms from 2013 to 2018, we find that these visits can inhibit cost stickiness. This finding holds in robustness tests and when controlling for endogeneity, including firm fixed effects, and using the Heckman selection model and the instrumental variables method. Further analyses reveal this inhibition is more pronounced for nonstate‐owned enterprises and the results are more significant regarding cost stickiness in firms consuming nonlabor materials and firms visited by institutional investors. Moreover, we explore plausible mechanisms through which corporate site visits inhibit cost stickiness, such as through a monitoring channel and a learning channel. Our study contributes to academic evidence on the benefit and value of corporate site visits to firm operations, showing these visits can be a useful way to build connections between investors and firms.

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Banking competition and cost stickiness

Cited by 14 publications

References 18 publications

Penghindaran Pajak, Karakteristik Dewan Komisaris dan Cost Stickiness

Penghindaran Pajak, Karakteristik Dewan Komisaris dan Cost Stickiness

Does Managerial Ability Lead to Different Cost Stickiness Behavior? Evidence from ASEAN Countries

Investor visits to corporate sites and cost stickiness

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