Cost Stickiness and Future Earnings Response Coefficient
DC Field | Value | Language |
---|---|---|
dc.contributor.author | 김진배 | - |
dc.contributor.author | 이민영 | - |
dc.date.accessioned | 2022-03-12T14:40:46Z | - |
dc.date.available | 2022-03-12T14:40:46Z | - |
dc.date.created | 2021-12-07 | - |
dc.date.issued | 2021 | - |
dc.identifier.issn | 1598-3919 | - |
dc.identifier.uri | https://scholar.korea.ac.kr/handle/2021.sw.korea/138736 | - |
dc.description.abstract | [Purpose] This paper examines whether sticky cost behavior reduces the information about future earnings reflected in current stock returns. Despite predicting cost behavior is essential part of earnings prediction (Weiss 2010), the effects of cost stickiness on the information environment are nearly unknown. Thus this study investigates whether the FERC which indicates the informativeness of realized earnings about future earnings varies with the degree of cost stickiness. [Methodology] This paper uses the approach of Collins et al. (1994) to measure the future earnings response coefficient and estimates firm- and year- specific cost stickiness following Via and Perego (2013). [Findings] Firms with greater cost stickiness have lower FERC and the negative effect of current sticky cost behavior on the FERC persist over at least future two-years of aggregation period of earnings. These findings indicate that sticky cost behavior reduces the information of two -year-ahead earnings reflected in current stock price. That is, this implies that investors do not view sticky cost behavior as the rational decision making of managers. Next, the negative relationship between cost stickiness and the FERC is more pronounced when firms’ asset intensity or employee intensity is low. These results support the main argument that sticky cost behavior exacerbates the informativeness of earnings because firms with low asset intensity or employee intensity bear relatively lower adjustment cost. [Implications] This study provides evidence on the effect of sticky cost behavior on the informativeness of accounting earnings. | - |
dc.language | English | - |
dc.language.iso | en | - |
dc.publisher | 한국국제회계학회 | - |
dc.title | Cost Stickiness and Future Earnings Response Coefficient | - |
dc.title.alternative | Cost Stickiness and Future Earnings Response Coefficient | - |
dc.type | Article | - |
dc.contributor.affiliatedAuthor | 김진배 | - |
dc.identifier.doi | 10.21073/kiar.2021..97.006 | - |
dc.identifier.bibliographicCitation | 국제회계연구, no.97, pp.127 - 149 | - |
dc.relation.isPartOf | 국제회계연구 | - |
dc.citation.title | 국제회계연구 | - |
dc.citation.number | 97 | - |
dc.citation.startPage | 127 | - |
dc.citation.endPage | 149 | - |
dc.type.rims | ART | - |
dc.identifier.kciid | ART002739221 | - |
dc.description.journalClass | 2 | - |
dc.description.journalRegisteredClass | kci | - |
dc.subject.keywordAuthor | cost behavior | - |
dc.subject.keywordAuthor | cost stickiness | - |
dc.subject.keywordAuthor | earnings informativeness | - |
dc.subject.keywordAuthor | future earnings response coefficient | - |
Items in ScholarWorks are protected by copyright, with all rights reserved, unless otherwise indicated.
(02841) 서울특별시 성북구 안암로 14502-3290-1114
COPYRIGHT © 2021 Korea University. All Rights Reserved.
Certain data included herein are derived from the © Web of Science of Clarivate Analytics. All rights reserved.
You may not copy or re-distribute this material in whole or in part without the prior written consent of Clarivate Analytics.