Does access to capital affect cost stickiness? Evidence from China

Cheng, Shijun; Jiang, Wei; Zeng, Yeqin

Abstract

We study the effect of limited access to capital on firm cost stickiness, using data from a large sample of Chinese private firms over 1998–2007. Our results show that on average SG&A costs are anti-sticky. For firms in regions with lower levels of financial development, SG&A costs have lower sensitivity to sales increases and exhibit lower stickiness. Overall our findings suggest access to capital as an important determinant of cost stickiness.

Citation

Cheng, S., Jiang, W., & Zeng, Y. (2018). Does access to capital affect cost stickiness? Evidence from China. Asia-Pacific Journal of Accounting & Economics, 25(1-2), 177-198. https://doi.org/10.1080/16081625.2016.1253483

• Journal Article Type: Article
• Acceptance Date: Oct 15, 2016
• Online Publication Date: Nov 15, 2016
• Publication Date: Jan 10, 2018
• Deposit Date: Sep 21, 2018
• Publicly Available Date: Sep 26, 2018
• Journal: Journal of Accounting and Economics
• Print ISSN: 1608-1625
• Electronic ISSN: 2164-2257
• Publisher: Taylor and Francis Group
• Peer Reviewed: Peer Reviewed
• Volume: 25
• Issue: 1-2
• Pages: 177-198
• DOI: https://doi.org/10.1080/16081625.2016.1253483
• Public URL: https://durham-repository.worktribe.com/output/1318556
• Related Public URLs: http://centaur.reading.ac.uk/67567/