The Effect of Good Corporate Governance on Stickiness Cost Level of Manufacturing Companies Listed on Indonesia Stock Exchange in Period of 2017-2018

Abstract

The purpose of this research is to find out whether SG&A cost is sticky and to see whether good corporate governance is able to reduce the level of stickiness cost. Population of this research were manufacturing companies listed on Indonesia stock exchange in the period of 2017-2018. Sample was chosen using purposive sampling technique with total sample of 111 companies. Analysis model used in this research was multiple regression which processed using SPSS 25 assistance. This research found that SG&A cost increased by 0.275 percent when sales increased by 1%. While SG&A cost decreased by 0.068% when sales decreased by 1%. The result of this research also found that gcg is able to reduce the level of stickiness cost.

Sticky Cost pada Biaya Penjualan Perusahaan Family Business Sektor Manufaktur

“…Pada saat aktivitas bisnis perusahaan mengalami penurunan namun biaya tetap tinggi tentunya akan menyebabkan laba perusahaan berkurang, hal inilah yang dapat dikatakan memiliki indikasi sticky cost (Kartikasari et al, 2018). Semakin tinggi tingkat perilaku sticky cost di perusahaan, maka perusahaan akan semakin sulit untuk mencapai laba (Murty et al, 2021) Penelitian serupa telah dilakukan dan memperoleh hasil bahwa adanya kekakuan biaya dan faktor-faktor lain yang berkontribusi terhadap kekakuan tersebut (Fan et al, 2021;Golden et al, 2020;Prabowo et al, 2018). Sticky cost pada biaya penjualan akan dilihat dengan cara melakukan pengamatan pada biaya penjualan di perusahaan sektor manufaktur yang terdapat di BEI.…”

Does CSR increase cost stickiness?

“…Cost stickiness is the exception to this and the evidence has been shown in several studies (Cheung et al, 2018;Eltivia et al, 2019;Lusiana & Kristianti, 2020;Murty et al, 2021). Sticky costs on administrative and general costs will occur if there is a conflict of interest between management in adjusting costs.…”