Asymmetric Cost Behaviour and Earnings Quality in the European Context

2020 ◽  
Author(s):  
Apostolos A. Ballas ◽  
Dimosthenis (Dimosthenes) L. Hevas ◽  
Nikolaos I. Karampinis ◽  
Orestes Vlismas
Keyword(s):  
Earnings Quality ◽  
European Context ◽  
Cost Behaviour ◽  
Asymmetric Cost

Do managers forecast asymmetric cost behaviour?

2018 ◽  
Vol 43 (4) ◽  
pp. 538-554 ◽  
Author(s):  
Michael E Bradbury ◽  
Tom Scott
Keyword(s):  
New Zealand ◽  
Local Government ◽  
Jel Classification ◽  
Cost Structure ◽  
Actual Behaviour ◽  
Asymmetric Relation ◽  
Cost Behaviour ◽  
Asymmetric Cost ◽  
Cost Stickiness

This article examines cost behaviour in a municipal (local government) setting and finds evidence of cost stickiness. We also find that costs are super-sticky as they increase even when revenues decrease. Municipals in New Zealand are required to produce forecasts, which allow us to investigate whether asymmetric cost behaviour is incorporated into forecasts. Forecast cost behaviour is found to be statistically indistinguishable from actual behaviour. In our tests, we control for asset intensity, employee intensity, expected demand, operating slack and past cost structure. The finding that the asymmetric relation between costs and revenues is incorporated into managerial forecasts suggests that cost stickiness is understood by managers rather than being merely a mechanistic outcome of cost structure. JEL Classification: M41, D24, H72

Asymmetric Cost Behaviour and Leverage: The Case of Shipping Industry

2020 ◽  
Author(s):  
Vassilios-Christos Naoum ◽  
Dimitrios Ntounis ◽  
Orestes Vlismas
Keyword(s):  
Shipping Industry ◽  
Cost Behaviour ◽  
Asymmetric Cost

Does community social capital affect asymmetric cost behaviour?

2020 ◽  
Vol 46 ◽  
pp. 100640 ◽  
Author(s):  
Sven Hartlieb ◽  
Thomas R. Loy ◽  
Brigitte Eierle
Keyword(s):  
Social Capital ◽  
Cost Behaviour ◽  
Asymmetric Cost
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