Exploring the asymmetric cost behaviour in the context of European non-listed firms

Naoum, Vasilios-Christos; Papanastasopoulos, Georgios A.; Selekos, Panagiotis; Vlismas, Orestes

doi:10.1080/00036846.2023.2208844

Cited by 2 publications

(4 citation statements)

References 44 publications

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Section: Journal Of Publicmentioning

confidence: 99%

“…According to the management accounting literature, a relatively large and stable organization is often the appropriate research site for testing the validity of management and cost accounting theories (Otley, 1994;Naoum et al, 2023). Relevant literature shows that the size of entities is a determinant of the intensity of their asymmetric cost behavior (Sepasi and Hassani, 2015;Cohen et al, 2017;Karatzimas et al, 2022;Naoum et al, 2023). For instance, sticky cost studies based on subsamples divided according to firm size, provide evidence that SG&A costs are sticky in large firms and anti-sticky in small and medium firms (Cheng et al, 2018) and operating expenses exhibit symmetric cost behavior for both very large and large firms, whereas medium-sized non-listed firms exhibit sticky cost behaviour (Naoum et al, 2023).…”

Section: Journal Of Publicmentioning

confidence: 99%

“…Relevant literature shows that the size of entities is a determinant of the intensity of their asymmetric cost behavior (Sepasi and Hassani, 2015;Cohen et al, 2017;Karatzimas et al, 2022;Naoum et al, 2023). For instance, sticky cost studies based on subsamples divided according to firm size, provide evidence that SG&A costs are sticky in large firms and anti-sticky in small and medium firms (Cheng et al, 2018) and operating expenses exhibit symmetric cost behavior for both very large and large firms, whereas medium-sized non-listed firms exhibit sticky cost behaviour (Naoum et al, 2023). Furthermore, Habib and Huang (2019) suggest that sticky cost behavior differs across charities' characteristics such as size.…”

Section: Journal Of Publicmentioning

confidence: 99%

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The effect of debt intensity on the asymmetric cost behavior: empirical evidence from local governments

Karatzimas,

Naoum,

Seretis

2024

JPBAFM

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PurposeThis study explores the relationship between debt intensity and cost stickiness at the local government level, a setting characterized by the existence of debt constraints and political influence.Design/methodology/approachBuilding on a theoretical framework informed by the concepts of coercive isomorphism and accountability, the present study focuses on Greek municipalities and applies Anderson et al.’s (2003) extended methodology, as reviewed by Banker and Byzalov (2014), in a sample of 1,366 municipality year observations for the period 2011–2020.FindingsThe results indicate that the degree of cost asymmetry is negatively associated with debt intensity. Periods before elections present the same picture. This negative relationship becomes insignificant in the case of large municipalities, which probably require more resources to support their operations and incur higher adjustment costs for reducing resources. These findings are robust to use alternative types of expenses associated with cost stickiness and a battery of control variables.Originality/valueLittle is known about the impact of debt level and financial constraints on cost behavior in the public sector context. This study takes a fresh look at the relationship between municipal debt structure and cost stickiness, adding to the understanding of cost behavior considering the debt level, financial constraints, resource-adjustment costs and the underlying managerial behavior.

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Section: Journal Of Publicmentioning

confidence: 99%

Section: Journal Of Publicmentioning

confidence: 99%

Section: Journal Of Publicmentioning

confidence: 99%

See 1 more Smart Citation

The effect of debt intensity on the asymmetric cost behavior: empirical evidence from local governments

Karatzimas,

Naoum,

Seretis

2024

JPBAFM

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“…Despite significant empirical advancements in understanding cost stickiness, its determinants, and implications for management and firm performance [1,2,13,21,29], there remain less explored areas in research concerning how cost management is influenced by business and industry-specific contexts, particularly across diverse geographical landscapes [24,[33][34][35][36][37][38][39]. This study aims to bridge this gap by examining the textile industry's cost stickiness within the contrasting labor markets and business environments of the Nordic countries and Spain.…”

Section: Introductionmentioning

confidence: 99%

Exploring Cost Stickiness in the Textile Industry: A Comparative Analysis between the Nordic Countries and Spain through Panel Data Analysis

Bona-Sánchez,

Salokangas,

Sorsa

2024

Applied Sciences

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This study explores the complexities of cost behavior in the textile industry, conducting a comparative analysis between firms in the Nordic countries and Spain. Our main goal is to examine how distinct economic and corporate governance models impact the cost management strategies of textile firms. Utilizing a panel dataset from the Orbis database covering the years 2017 to 2022, we reveal significant differences in cost stickiness between these regions. Notably, Nordic textile firms demonstrate a stronger tendency toward cost stickiness compared to their Spanish counterparts. This difference is largely attributed to the Nordic textile firms’ more cautious approach to adjusting costs in response to decreases in revenue, potentially motivated by a commitment to sustainability, eco-friendly technologies, and long-term business success. Our analysis not only highlights the complex interaction between the global challenges confronting the textile sector and the unique economic and governance environments but also maps out how these elements shape cost management strategies. By offering insights to both academics and practitioners, this study advocates for a comprehensive cost management approach, capable of navigating demand volatilities and strategic complexities faced by textile firms.

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Exploring the asymmetric cost behaviour in the context of European non-listed firms

Cited by 2 publications

References 44 publications

The effect of debt intensity on the asymmetric cost behavior: empirical evidence from local governments

The effect of debt intensity on the asymmetric cost behavior: empirical evidence from local governments

Exploring Cost Stickiness in the Textile Industry: A Comparative Analysis between the Nordic Countries and Spain through Panel Data Analysis

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