Is the asymmetric cost behavior affected by competition factors?
- Authors
- Cheung, Joonhei; Kim, Hyunpyo; Kim, Seungjun; Huang, Rong
- Issue Date
- Jan-2018
- Publisher
- ROUTLEDGE JOURNALS, TAYLOR & FRANCIS LTD
- Keywords
- Cost stickiness; competition factors; product differentiation; entry costs; market size
- Citation
- ASIA-PACIFIC JOURNAL OF ACCOUNTING & ECONOMICS, v.25, no.1-2, pp 218 - 234
- Pages
- 17
- Journal Title
- ASIA-PACIFIC JOURNAL OF ACCOUNTING & ECONOMICS
- Volume
- 25
- Number
- 1-2
- Start Page
- 218
- End Page
- 234
- URI
- https://scholarworks.bwise.kr/cau/handle/2019.sw.cau/63922
- DOI
- 10.1080/16081625.2016.1266271
- ISSN
- 1608-1625
2164-2257
- Abstract
- Prior studies on the asymmetric cost behavior mainly focus on internal factors. However, managers consider both internal and external factors when making strategic cost decisions. In this paper, we investigate the relation between the asymmetric cost behavior and external competition factors. We find that Selling, General, and Administrative costs are more sticky for firms in different competition environments, proxied by higher product differentiation, higher entry costs, and larger market size. Overall, these findings suggest that the asymmetric cost behavior is affected by external factors as well as internal factors.
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Collections - College of Business & Economics > School of Business Administration > 1. Journal Articles
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