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Managerial style in cost asymmetry and shareholder value

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  • Kerstin Lopatta
  • Thomas Kaspereit
  • Laura‐Maria Gastone

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.

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  • Kerstin Lopatta & Thomas Kaspereit & Laura‐Maria Gastone, 2020. "Managerial style in cost asymmetry and shareholder value," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 41(5), pages 800-826, July.
    • Handle: RePEc:wly:mgtdec:v:41:y:2020:i:5:p:800-826
    DOI: 10.1002/mde.3139
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    2. Ibrahim, Awad Elsayed Awad & Ali, Hesham & Aboelkheir, Heba, 2022. "Cost stickiness: A systematic literature review of 27 years of research and a future research agenda," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 46(C).

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