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Cost Stickiness: Behavior and Factors
Lies Zulfiati. Rimi Gusliana Mais, Siti Nuridah.

Sekolah Tinggi Ilmu Ekonomi Indonesia


Abstract

Abstract – The objective of the study to analyze the sticky cost behavior and the factors that affect the cost stickiness on manufacturing companies listed in Indonesia Stock Exchange. The behavior of sticky cost in this study is found by analyzing selling, general and administrative cost which are categorized into several industry groups to observe the annual degree of sticky cost of each group of industry, In addition the factors that affect the cost stickiness capital intensity ratio, employee intensity ratio, incentive management as measured by free cash flow and the control variabel, firm size. The method used in this study is multiple linear regression analysis using the equation as measured by Anderson, Banker and Janakiraman. The sample is determined by purposive sampling method with the number of samples of 97 companies during the period 2014-2018. The result of this study are that sticky cost behavior occurs in all manufacturing companies in Indonesia. The largest and smallest degrees of sticky cost occurs in animal feed and other sectors, which is as proof that the company such sectors has in consistent management in supervising and controlling selling, general and administrative cost. Furthermore the result of the factors affecting the cost stickiness show that : 1) capital intensity ratio does not influence the degree of cost stickiness, 2) employee intensity ratio affects the degree of stickiness, 3) free cash flow does not affect the degree of cost stickiness, and 4) firm size of control variable affects the degree of cost stickiness.

Keywords: Selling, General and Administrative Cost:Capital Intensity Ratio:Employee Intensity Ratio:Free Cash Flow:Sticky Cost

Topic: Financial Accounting

Link: https://ifory.id/abstract/r3En6WUTxCgX

Conference: Annual International Conference on Accounting Research (AICAR 2019)

Plain Format | Corresponding Author (Siti Nuridah)

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