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185659

The Effect of Agency Theory upon Cost Stickiness

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Last updated: 22 Jan 2023

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Abstract

The main purpose of the research was to examine the effect of agency problem on cost stickiness, the results revealed that cost exhibits an asymmetric behavior which contradicts the traditional cost assumption, further, agency theory plays a vital role in determining the asymmetric cost behavior through two drivers; empire building incentives that make managers increasing the acquisition of resources when demand increases and keeping unused resources when demand drops in order to chaise their personal benefits resulting in cost stickiness, also, earnings management incentives that make managers delaying the acquisition of needed resources when demand increases and cutting unused resources aggressively when demand declines in order to meet earnings target resulting in a lower degree of cost stickiness

DOI

10.21608/mosj.2021.185659

Keywords

Cost Stickiness, Asymmetric cost behavior, agency theory, Empire building, earnings management

Authors

First Name

Hagar

Last Name

Ahmed Fouad Abdeltawab

MiddleName

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Affiliation

کلية التجارة - جامعة بنى سويف

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Orcid

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Volume

31

Article Issue

2

Related Issue

26780

Issue Date

2021-08-01

Receive Date

2021-07-26

Publish Date

2021-08-01

Page Start

1

Page End

23

Print ISSN

1687-3440

Online ISSN

2682-3349

Article File

MOSJ_Volume 31_Issue 2_Pages 1-23.pdf

PDF . 856.9kB

Link

https://mosj.journals.ekb.eg/article_185659.html

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https://mosj.journals.ekb.eg/service?article_code=185659

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المقالة الأصلية

Type Code

1,226

Publication Type

Journal

Publication Title

مجلة الدراسات المالية والتجارية

Publication Link

https://mosj.journals.ekb.eg/

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Article

Created At

22 Jan 2023