IDEAS home Printed from https://ideas.repec.org/a/ibf/gjbres/v4y2010i4p1-10.html
   My bibliography  Save this article

Sticky Selling, General, And Administrative Cost Behavior And Its Changes In Japan

Author

Listed:
  • Daoping (Steven) He
  • Jenny Teruya
  • Takashi Shimizu

Abstract

This study examines whether Japanese firms’ selling, general, and administrative costs are sticky. We also investigate the determinants of cost stickiness in Japan and test whether Japanese managers changed their cost behavior after the stock market collapse in 1990. We find that similar to US firms, Japanese firms also demonstrate sticky selling, general, and administrative cost behavior; however, the stickiness of selling, general, and administrative costs in Japan is less likely to be adjusted due to temporary changes in their performance. We also find that there is a significant decrease in the magnitude of stickiness in Japan after the asset bubble burst, showing that Japanese managers adjusted their cost behavior in the post-bubble era.

Suggested Citation

  • Daoping (Steven) He & Jenny Teruya & Takashi Shimizu, 2010. "Sticky Selling, General, And Administrative Cost Behavior And Its Changes In Japan," Global Journal of Business Research, The Institute for Business and Finance Research, vol. 4(4), pages 1-10.
    • Handle: RePEc:ibf:gjbres:v:4:y:2010:i:4:p:1-10
    as

    Download full text from publisher

    File URL: http://www.theibfr2.com/RePEc/ibf/gjbres/gjbr-v4n4-2010/GJBR-V4N4-2010-1.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Prowse, Stephen D., 1990. "Institutional investment patterns and corporate financial behavior in the United States and Japan," Journal of Financial Economics, Elsevier, vol. 27(1), pages 43-66, September.
    2. Mark C. Anderson & Rajiv D. Banker & Surya N. Janakiraman, 2003. "Are Selling, General, and Administrative Costs “Sticky”?," Journal of Accounting Research, Wiley Blackwell, vol. 41(1), pages 47-63, March.
    3. Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Josiane Da Conceição Bitela Da Silva & Tany Ingrid Sagredo Marin & Katia Abbas & Luiz Eduardo Gaio & Carlos Alberto Grespan Bonacim & Rafael Confetti Gatsios, 2024. "Asymmetry in Cost Behavior in Brazilian Hospitals," JRFM, MDPI, vol. 17(7), pages 1-15, June.
    2. Flávia Renata de Souza & Altair Borgert & Leonardo Flach, 2018. "Payroll exemption impact on the behavior of costs in BM&FBovespa civil construction sector," Contaduría y Administración, Accounting and Management, vol. 63(3), pages 5-6, Julio-Sep.
    3. Vinícius Costa da Silva Zonatto & Cristian Baú Dal Magro & Camila Freitas Sant´Ana & Daniel Fernando Padilha, 2018. "Effects of economic growth in the behavior of sticky costs of companies belonging to BRICS countries," Contaduría y Administración, Accounting and Management, vol. 63(4), pages 33-34, Octubre-D.
    4. Shohei Nagasawa, 2018. "Asymmetric cost behavior in local public enterprises: exploring the public interest and striving for efficiency," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 29(3), pages 225-273, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wulung Li & Ramachandran Natarajan & Yan Zhao & Kenneth Zheng, 2021. "The effect of management control mechanisms through risk-taking incentives on asymmetric cost behavior," Review of Quantitative Finance and Accounting, Springer, vol. 56(1), pages 219-243, January.
    2. Stuart L. Gillan & Laura T. Starks, 2002. "Institutional Investors, Corporate Ownership, and Corporate Governance: Global Perspectives," WIDER Working Paper Series DP2002-09, World Institute for Development Economic Research (UNU-WIDER).
    3. Horiuchi, Akiyoshi & Shimizu, Katsutoshi, 1998. "The deterioration of bank balance sheets in Japan: Risk-taking and recapitalization," Pacific-Basin Finance Journal, Elsevier, vol. 6(1-2), pages 1-26, May.
    4. Martin Bugeja & Meiting Lu & Yaowen Shan, 2015. "Cost Stickiness in Australia: Characteristics and Determinants," Australian Accounting Review, CPA Australia, vol. 25(3), pages 248-261, September.
    5. Hideaki Sakawa & Naoki Watanabel, 2020. "Main bank relationship and accounting conservatism: evidence from Japan," Asian Business & Management, Palgrave Macmillan, vol. 19(1), pages 62-85, February.
    6. Mahmoud Agha & Baban Eulaiwi, 2020. "The alignment effects of CEO stock incentives in the presence of government ownership: International evidence from Gulf Cooperation Council countries," Australian Journal of Management, Australian School of Business, vol. 45(2), pages 195-222, May.
    7. Guillaume Colosiez & Mouldi Djelassi, 1993. "La redécouverte des cycles financiers," Revue d'Économie Financière, Programme National Persée, vol. 26(3), pages 109-144.
    8. Kuang Kuang Deng & Siu Kei Wong & Kwong Wing Chau, 2018. "Institutions and Capital Structure: The Case of Chinese Property Firms," The Journal of Real Estate Finance and Economics, Springer, vol. 56(3), pages 352-385, April.
    9. Li, Tongxia & Lu, Chun, 2022. "Stakeholder orientation and cost stickiness: Evidence from a natural experiment," Finance Research Letters, Elsevier, vol. 47(PA).
    10. Roy Mersland & Daudi Pascal & Leif Atle Beisland, 2016. "The influence of CEO power on agency costs in non-profit organisations: evidence from the global microfinance industry," Working Papers CEB 16-045, ULB -- Universite Libre de Bruxelles.
    11. Cai, Jun & Loughran, Tim, 1998. "The performance of Japanese seasoned equity offerings, 1971-1992," Pacific-Basin Finance Journal, Elsevier, vol. 6(5), pages 395-425, November.
    12. Alqahtani, Jubran & Duong, Lien & Taylor, Grantley & Eulaiwi, Baban, 2022. "Outside directors, firm life cycle, corporate financial decisions and firm performance," Emerging Markets Review, Elsevier, vol. 50(C).
    13. Li, Tongxia & Lu, Chun & Chen, Zhihua, 2023. "The unintended consequence of collateral-based financing: Evidence from corporate cost behavior," Journal of Contemporary Accounting and Economics, Elsevier, vol. 19(1).
    14. Mabel D Costa & Ahsan Habib, 2023. "Cost stickiness and firm value," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 34(2), pages 235-273, June.
    15. Chung, Chune Young & Hur, Seok-Kyun & Liu, Chang, 2019. "Institutional investors and cost stickiness: Theory and evidence," The North American Journal of Economics and Finance, Elsevier, vol. 47(C), pages 336-350.
    16. Stephen Prowse, 1996. "Alternative Models of Financial System Development," RBA Annual Conference Volume (Discontinued), in: Malcom Edey (ed.),The Future of the Financial System, Reserve Bank of Australia.
    17. Gene C. Lai & Piman Limpaphayom, 2003. "Organizational Structure and Performance: Evidence From the Nonlife Insurance Industry in Japan," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 70(4), pages 735-757, December.
    18. Ha, Joohyung & Feng, Mingming, 2018. "Conditional conservatism and labor investment efficiency," Journal of Contemporary Accounting and Economics, Elsevier, vol. 14(2), pages 143-163.
    19. David Flath, 1994. "Keiretsu Shareholding Ties: Antitrust Issues," Contemporary Economic Policy, Western Economic Association International, vol. 12(1), pages 24-36, January.
    20. Uchida, Konari, 2006. "Determinants of stock option use by Japanese companies," Review of Financial Economics, Elsevier, vol. 15(3), pages 251-269.

    More about this item

    Keywords

    Cost behavior; Japanese firms;

    JEL classification:

    • M40 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ibf:gjbres:v:4:y:2010:i:4:p:1-10. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Mercedes Jalbert (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.