Cost stickiness: An empirical study on the existence of asymmetrical cost behavior of publicly listed companies in the Philippines
Date of Publication
2009
Document Type
Bachelor's Thesis
Degree Name
Bachelor of Science in Accountancy
Subject Categories
Accounting
College
Ramon V. Del Rosario College of Business
Department/Unit
Accountancy
Thesis Adviser
Arnel Onesimo O. Uy
Defense Panel Member
Helen A. Bernados
Corazon L. Magpayo
Abstract/Summary
The study utilized Anderson, Banker, and Janakiraman's (2003) basic model to test for the existence of asymmetrical behavior in SG&A costs for a sample of 74 Philippine publicly-listed companies over a 9-year period. The findings suggested that a 1% increase in revenue leads only to 0.3891% decrease in costs, thus demonstrating the existence of asymmetrical cost behavior. Variations revealed that cost stickiness is not reversed in subsequent periods and it is less pronounced when revenue declined in the preceding period. Empirical evidence showed that the degree of stickiness is greater during periods of economic growth and does not increase with the asset-and employee-intensity of the company. Lastly, stickiness is only exhibited for absolute revenue changes over 60%.
Abstract Format
html
Language
English
Format
Accession Number
TU15984
Shelf Location
Archives, The Learning Commons, 12F, Henry Sy Sr. Hall
Physical Description
97 leaves : col. ill. ; 28 cm.
Keywords
Cost accounting; Managerial accounting; Financial risk management
Recommended Citation
Aco, B. F., Co, H. C., & Kua, J. G. (2009). Cost stickiness: An empirical study on the existence of asymmetrical cost behavior of publicly listed companies in the Philippines. Retrieved from https://animorepository.dlsu.edu.ph/etd_bachelors/10572
Embargo Period
12-13-2021
Note
Running head: Cost stickiness.