Empirical research of costs stickiness behavior in Chinese manufacturing listed firms

Abstract

This paper examines the existence of cost stickiness in total costs, operating costs, selling expenses and general & administrative expenses by using our modified model based on the ABJ model. With the analysis of accounting data during 2008 to 2011 from 1192 Chinese A-share listed companies, we find: (1) Total costs, operating costs and general & administrative expenses are sticky; (2) Selling expenses are anti-sticky; (3) The cost stickiness would converse in the subsequent period, but whether they would fall in the long time window is unclear.