Debt maturity structure and cost stickiness

Habib, Ahsan; Costa, Mabel D.

doi:10.1002/jcaf.22479

Cited by 11 publications

(4 citation statements)

References 34 publications

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“…Debt load can be considered to be a crucial aspect of businesses. Habib and Costa (2021) argued that external stakeholders, especially lenders, can keep an eye on management to prohibit them from conserving resources against the interests of the company and preventing agency issues when sales decrease, and short-term debts can lessen the level of cost stickiness. This is consistent with Calleja et al (2006) who found that companies with higher debt levels showed symmetric cost behavior.…”

Section: Cost Stickiness and Debt Intensitymentioning

confidence: 99%

An Investigation of the Moderating Role of Egyptian Firm’s Characteristics on the Relationship between Costs Stickiness and Firm Profitability

احمد¹

2023

المجلة العلمیة للدراسات والبحوث المالیة والتجاریة

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This study seeks to investigate the effect of four firm's characteristics on the degree of cost stickiness and to examine the moderating role of these characteristics on the relationship between cost stickiness and firm's profitability in Egyptian manufacturing firms. The four-firm characteristics examined in this study are business strategy, ownership structure, assets intensity, and debt intensity. The financial data of this study were collected from the published annual reports for a sample of 64 Egyptian listed manufacturing firms during the period (2016-2020) with total observations of 259 firm-year. The measurement of cost stickiness in this paper is based on Anderson et al.'s (2003) cost stickiness model. Based on the multiple regression analysis used to test the two research models examined in this paper, the results provide evidence that asset intensity positively significantly affects cost stickiness, however, debt intensity negatively affects cost stickiness. In addition, asset intensity and debt intensity moderate the relationship between cost stickiness and a firm's performance.

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Section: Cost Stickiness and Debt Intensitymentioning

confidence: 99%

An Investigation of the Moderating Role of Egyptian Firm’s Characteristics on the Relationship between Costs Stickiness and Firm Profitability

احمد¹

2023

المجلة العلمیة للدراسات والبحوث المالیة والتجاریة

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“…Management optimism is another important cause of expense stickiness (Lee et al , 2020). If management insists that performance will improve in the future, that is, management optimism, the cost will not be significantly adjusted due to income decreases (Habib and Costa, 2021). Conversely, if managers expect adverse future conditions, that is, management pessimism, they will reduce investment to maintain the status quo.…”

Section: Hypothesis Developmentmentioning

confidence: 99%

Environmental investment growth (EIG) and corporate cost stickiness in China: substantive or symbolic management?

Xu,

Liu,

Liu

et al. 2023

SAMPJ

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Purpose Considering the greenwashing risk of symbolic environmental management, this study aims to distinguish the motivation for environmental investment growth (EIG) from the corporate cost stickiness and anti-stickiness perspectives. Design/methodology/approach This study analyzes the impact of substantive and symbolic environmental management on cost stickiness. Subsequently, competing hypotheses are proposed. Finally, empirical tests are conducted on Chinese A-share listed companies from 2010 to 2019. Findings EIG significantly improves enterprises’ cost stickiness. The cost of high EIG enterprises does not decrease significantly with a decline in income compared to other enterprises, which is consistent with the motivation for substantive environmental management. Enterprises with high asset specificity and optimistic management expectations show more obvious substantive environmental management. Government and public environmental concerns cause more pronounced substantive environmental management. Practical implications An evaluation of corporate environmental responsibility should take into account both what the company has disclosed and what it has actually done. Social implications Governments and the public should have a comprehensive understanding of corporate environmental management. They need to strengthen their ability to recognize symbolic environmental management and support substantive environmental management. Originality/value Fundamental to the evaluation of corporate environmental responsibility, this study distinguishes the motivations for corporate EIG disclosures from the cost stickiness perspective to avoid the risk of greenwashing. Hypotheses on the impact of substantive and symbolic environmental management on cost stickiness are presented. This study verifies the substantive environmental management characteristics of listed Chinese companies.

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“…‫منها‬ ‫يذكر‬ ‫بشقيه‬ ‫المال‬ ‫رأس‬ ‫وتكلفة‬ ‫السلوك،‬ ‫متباينة‬ ‫التكلفة‬ ‫بين‬ ‫المحتملة‬ ‫العالقة‬ ‫الدراسات‬ ‫من‬ ‫مجموعة‬ ‫تناولت‬ (Habib & Costa, 2021. Zhong et al, 2020.…”

Section: ‫المفتاحية‬ ‫الكلمات‬unclassified

أثر التكلفة متباينة السلوك على تكلفة رأس المال: دراسة تطبيقية

عيد,

امين

2023

المجلة الأکاديمية للبحوث التجارية المعاصرة

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This study aimed to find out the relationship between Sticky cost and the cost of capital, both Equity and Debt. The researcher conducted an applied study on the industrial companies listed on the Egyptian Stock Exchange, through the application on 85 industrial companies with 680 observations in the period from 2014 to 2021. It has been mainly relied on some descriptive statistical tests, which are the arithmetic mean, standard deviation, highest value, and lowest value. The most important results of the study were as follows: There is a non-significant inverse relationship between the sticky cost and the cost of Equity, and the existence of a direct nonsignificant relationship between the sticky cost and the cost of Debt.

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Debt maturity structure and cost stickiness

Cited by 11 publications

References 34 publications

An Investigation of the Moderating Role of Egyptian Firm’s Characteristics on the Relationship between Costs Stickiness and Firm Profitability

An Investigation of the Moderating Role of Egyptian Firm’s Characteristics on the Relationship between Costs Stickiness and Firm Profitability

Environmental investment growth (EIG) and corporate cost stickiness in China: substantive or symbolic management?

أثر التكلفة متباينة السلوك على تكلفة رأس المال: دراسة تطبيقية

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