Managerial style in cost asymmetry and shareholder value

Abstract

We show that CEOs' contribution to SG&A cost asymmetry is associated with lower shareholder value. CEO-related excess SG&A cost stickiness of CEOs with compensation less tied to shareholder value creation and high power drive this association.Last, we provide first evidence that cost asymmetry incorporates a harmful element to the firm and shareholders, namely CEO-related excess SG&A cost asymmetry.

Research on Cost Stickiness in International Journals: A Bibliometric Study

“…The fifth cluster reviews sticky cost research in the manufacturing businesses including agile manufacturing, inventory control and management, and lean manufacturing (Azeez et al, 2017;Kroes & Manikas, 2018). Finally, the sixth cluster examines the occurrence of sticky costs due to leadership/manager/CEO characteristics related to optimism and overconfidence Bu et al, 2015;Ciftci & Zoubi, 2019;Hur et al, 2019;Krisnadewi & Soewarno, 2021;Lai et al, 2021;Lopatta et al, 2020;Yang, 2015).…”

El Pacto Global de las Naciones Unidas y el ciclo de vida de la firma: un estudio exploratorio

“…We use this procedure to classify firms, introductory stages, growth stage, maturity stage, shake-out, or decline in the year they join the UNGC. This method of life cycle classification is also used by Hasan (2018), Lopatta et al (2020), Meza et al (2020), andBlomkvist et al (2021).…”

Is Cost Stickiness a Bad Signal From Catur Marga Perspective?

“…A total of two articles were conceptual papers Guenther et al, 2014), and 24 articles did not discuss the determinants of cost stickiness but instead used them as independent variables. These articles have not been used because they discuss the effects of cost stickiness on, for example, the forecasting of earnings (Ciftci et al, 2016;Ciftci & Salama, 2018;Kaspereit & Lopatta, 2019;Lopatta et al, 2020;Lu et al, 2020;Tang et al, 2020;Weiss, 2010). Be cause our focus is the managers' behaviour, we have dropped 15 articles that discuss, for example, the effect of an auditor's choice, ac counting policies, changes in office address, CEO structure, and changes in the research sample on cost stickiness (Chae & Chung, 2015;Chae & Ryu, 2016;Chung et al, 2019;Ibrahim, 2018;Lee et al, 2019;Loy & Hartli eb, 2018;Shust & Weiss, 2014;Xue & Hong, 2016;Yang, 2015).…”

“…As users of cost account ing information, we need to understand the causes of the asymmetry of cost behaviour, especially cost stickiness. Studies have even shown that cost stickiness (CS) affects the company's stock performance (Ciftci et al, 2016;Ciftci & Salama, 2018;Kaspereit & Lopatta, 2019;Lopatta et al, 2020;Lu et al, 2020;Tang et al, 2020;Weiss, 2010). The asymmetry of cost behaviour is due to individual management considerations in ma king decisions.…”