Sticky cost theory and firm’s evolution

ABSTRACT

The present study investigates the cost behaviour across a firm’s life cycle. Following firms’ evolution, we incorporate a medium to long-term strategic frame on the examination of the association between costs and revenues examining different types of operating costs and controlling for evolution from growth to maturity life cycle stage.

KEYWORDS:

• Life cycle
• listed firms
• cost asymmetry
• anti-stickiness

JEL CLASSIFICATION:

• M41
• G31

Acknowledgments

We would like to thank David Peel (editor), and the anonymous reviewer for their insightful suggestions. An initial draft of this study has been benefited by comments from seminar participants at the 2021 EAA Annual Congress and the 17^th HFAA National Conference (in Greece). We appreciate financial support from the University of Piraeus Research Center.

Disclosure statement

No potential conflict of interest was reported by the author(s).

Notes

¹ Our empirical analysis is based on standard errors that are clustered by firm.: