Is the asymmetric cost behavior affected by competition factors?Footnote^*

* Accepted by Hong Hwang upon recommendation by Jeong-Bon Kim

References

• Altman, E. I. 1968. “Financial Ratios, Discriminant Analysis and the Prediction of Corporate Bankruptcy.” The Journal of Finance 23 (4): 589–609.10.1111/j.1540-6261.1968.tb00843.x
   Web of Science ®Google Scholar
• Anderson, M., R. Banker, and S. Janakiraman. 2003. “Are Selling, General, and Administrative Costs ‘Sticky’?” Journal of Accounting Research 41 (1): 47–63.10.1111/joar.2003.41.issue-1
   Web of Science ®Google Scholar
• Balakrishnan, R., and D. A. Cohen. 2013. Competition and Financial Accounting Misreporting. Working paper. Philadelphia: University of Pennsylvania.
   Google Scholar
• Balakrishnan, R., and T. Gruca. 2008. “Cost Stickiness and Core Competency: A Note.” Contemporary Accounting Research 25 (4): 993–1006.10.1506/car.25.4.2
   Web of Science ®Google Scholar
• Balakrishnan, R., E. Labro, and N. Soderstrom. 2014. “Cost Structure and Sticky Costs.” Journal of Management Accounting Research 26 (2): 91–116.10.2308/jmar-50831
   Google Scholar
• Banker, R. D., D. Byzalov, and L. Chen. 2013. “Employment Protection Legislation, Adjustment Costs and Cross-country Differences in Cost Behavior.” Journal of Accounting and Economics 55 (1): 111–127.10.1016/j.jacceco.2012.08.003
   Web of Science ®Google Scholar
• Banker, R. D., D. Byzalov, and J. M. Plehn-Dujowich. 2011. Sticky Cost Behavior: Theory and Evidence. Working paper. Philadelphia: Temple University.
   Google Scholar
• Banker, R. D., D. Byzalov, and L. Threinen. 2013. Determinants of International Differences in Asymmetric Cost Behavior. Working paper. Philadelphia: Temple University.
   Google Scholar
• Banker, R., R. Huang, and R. Natarajan. 2011. “Equity Incentives and Long-term Value Created by SG&A Expenditure.” Contemporary Accounting Research 28 (3): 794–830.10.1111/care.2011.28.issue-3
   Web of Science ®Google Scholar
• Calleja, K., M. Steliaros, and D. Thomas. 2006. “A Note on Cost Stickiness: Some International Comparisons.” Management Accounting Research 17 (2): 127–140.10.1016/j.mar.2006.02.001
   Google Scholar
• Chen, C. X., T. Gores, and J. Nasev. 2013. Managerial Overconfidence and Cost Stickiness. Working paper. Champaign: University of Illinois.
   Google Scholar
• Chen, C., L. Li, and M. L. Z. Ma. 2014. “Product Market Competition and the Cost of Equity Capital: Evidence from China.” Asia-Pacific Journal of Accounting & Economics 21 (3): 227–261.10.1080/16081625.2014.893197
   Web of Science ®Google Scholar
• Chen, C. X., H. Lu, and T. Sougiannis. 2012. “The Agency Problem, Corporate Governance, and the Asymmetrical Behavior of Selling, General, and Administrative Costs.” Contemporary Accounting Research 29 (1): 252–282.10.1111/care.2012.29.issue-1
   Web of Science ®Google Scholar
• Cheng, Q. 2005. “What Determines Residual Income?” The Accounting Review 80 (1): 85–112.10.2308/accr.2005.80.1.85
   Web of Science ®Google Scholar
• Cheung, C., H. Kim, S. Kim, and B. Kim. 2014. “The Effect of Industry Characteristics on Asymmetric Cost Behavior.” Korean Accounting Journal 23 (6): 429–456.
   Google Scholar
• Comanor, W., and T. Wilson. 1979. “The Effects of Advertising on Competition: A Survey.” Journal of Economic Literature 17 (3): 453–476.
   Google Scholar
• Cooper, R., and R. Kaplan. 1988. “How Cost Accounting Distorts Product Costs.” Management Accounting 69 (10): 20–27.
   Google Scholar
• Cooper, R., and R. Kaplan. 1992. “Activity Based Cost Systems: Measuring the Cost of Resources Usage.” Accounting Horizons 6 (3): 1–13.
   Google Scholar
• DeFond, M., and C. W. Park. 1999. “The Effect of Competition on CEO Turnover.” Journal of Accounting and Economics 27 (1): 35–56.10.1016/S0165-4101(98)00044-5
   Web of Science ®Google Scholar
• Dhaliwal, D., S. Huang, I. K. Khurana, and R. Pereira. 2014. “Product Market Competition and Conditional Conservatism.” Review of Accounting Studies 19 (4): 1309–1345.10.1007/s11142-013-9267-2
   Web of Science ®Google Scholar
• Dierynck, B., W. R. Landsman, and A. Renders. 2012. “Do Managerial Incentives Drive Cost Behavior? Evidence about the Role of the Zero Earnings Benchmark for Labor Cost Behavior in Private Belgian Firms.” The Accounting Review 87 (4): 1219–1246.10.2308/accr-50153
   Web of Science ®Google Scholar
• Djankov, S., R. La Porta, F. Lopez-de-Silanes, and A. Shleifer. 2002. “The Regulation of Entry.” Quarterly Journal of Economics 117: 1–37.10.1162/003355302753399436
   Web of Science ®Google Scholar
• Djankov, S., R. La Porta, F. Lopez-de-Silanes, and A. Shleifer. 2008. “The Law and Economics of Self-dealing.” Journal of Financial Economics 88: 430–465.10.1016/j.jfineco.2007.02.007
   Web of Science ®Google Scholar
• Dyck, A., and L. Zingales. 2004. “Private Benefits of Control: An International Comparison.” The Journal of Finance 59: 537–600.10.1111/j.1540-6261.2004.00642.x
   Web of Science ®Google Scholar
• Grullon, G., and R. Michaely. 2008. Corporate Payout Policy and Product Market Competition. Working Paper. Houston: Rice University.
   Google Scholar
• Giroud, X., and H. Mueller. 2010. “Does Corporate Governance Matter in Competitive Industries?” Journal of Financial Economics 95 (3): 312–331.10.1016/j.jfineco.2009.10.008
   Web of Science ®Google Scholar
• Giroud, X., and H. Mueller. 2011. “Corporate Governance, Product Market Competition, and Equity Prices.” The Journal of Finance 66 (2): 563–600.10.1111/j.1540-6261.2010.01642.x
   Web of Science ®Google Scholar
• Hart, O. 1983. “The Market Mechanism as an Incentive Scheme.” The Bell Journal of Economics 14 (2): 366–382.10.2307/3003639
   Google Scholar
• Hay, D., and G. Liu. 1997. “The Efficiency of Firms: What Difference Does Competition Make.” The Economic Journal 107 (442): 597–617.10.1111/ecoj.1997.107.issue-442
   Web of Science ®Google Scholar
• Jensen, M. 1986. “Agency Costs of Free Cash Flow, Corporate Finance and Takeovers.” American Economic Review 76 (2): 323–329.
   Web of Science ®Google Scholar
• Kama, I., and D. Weiss. 2013. “Do Earnings Targets and Managerial Incentives Affect Sticky Costs?” Journal of Accounting Research 51 (1): 201–224.10.1111/joar.2013.51.issue-1
   Web of Science ®Google Scholar
• Karuna, C. 2007. “Industry Product Market Competition and Managerial Incentives.” Journal of Accounting and Economics 43 (2–3): 275–297.10.1016/j.jacceco.2007.02.004
   Web of Science ®Google Scholar
• Kim, J. B., and K. Wang. 2014. Labor Unemployment Risk and Sticky Cost Behavior. Working Paper. Kowloon: City University of Hong Kong.
   Google Scholar
• La Porta, R., F. Lopez-de-Silanes, A. Shleifer, and R. Vishny. 1998. “Law and Finance.” Journal of Political Economy 106: 1113–1155.10.1086/250042
   Web of Science ®Google Scholar
• Leuz, C., D. Nanda, and P. Wysocki. 2003. “Earnings Management and Investor Protection: An International Comparison.” Journal of Financial Economics 69: 505–527.10.1016/S0304-405X(03)00121-1
   Web of Science ®Google Scholar
• Masulis, R. W., C. Wang, and F. Xie. 2007. “Corporate Governance and Acquirer Returns.” The Journal of Finance 62 (4): 1851–1889.10.1111/j.1540-6261.2007.01259.x
   Web of Science ®Google Scholar
• Noreen, E., and N. S. Soderstrom. 1997. “The Accuracy of Proportional Cost Models: Evidence from Hospital Service Departments.” Review of Accounting Studies 2 (1): 89–114.10.1023/A:1018325711417
   Google Scholar
• Ohlson, J. A. 1995. “Earnings, Book Values, and Dividends in Equity Valuation.” Contemporary Accounting Research 11 (2): 661–687.10.1111/care.1995.11.issue-2
   Google Scholar
• Petersen, M. A. 2009. “Estimating Standard Errors in Finance Panel Data Sets: Comparing Approaches.” Review of Financial Studies 22 (1): 435–480.10.1093/rfs/hhn053
   Web of Science ®Google Scholar
• Porter, M. E. 1998. On Competition. Boston, MA: Harvard Business School Press.
   Google Scholar
• Porter, M. E. 2008. “The Five Competitive Forces that Shape Strategy.” Harvard Business Review 86 (1): 78–93.
   PubMed Web of Science ®Google Scholar
• Raith, M. 2003. “Competition, Risk and Managerial Incentives.” American Economic Review 93 (4): 1425–1436.10.1257/000282803769206395
   Web of Science ®Google Scholar
• Roychowdhury, S. 2006. “Earnings Management Through Real Activities Manipulation.” Journal of Accounting and Economics 42 (3): 335–370.10.1016/j.jacceco.2006.01.002
   Web of Science ®Google Scholar
• Stulz, R. 1990. “Managerial Discretion and Optimal Financing Policies.” Journal of Financial Economics 26 (1): 3–27.10.1016/0304-405X(90)90011-N
   Web of Science ®Google Scholar
• Subramaniam, C., and M. L. Weidenmier. 2003. Additional Evidence on the Sticky Behavior of Costs. Working Paper. Fort Worth: Texas Christian University.
   Google Scholar