Does access to capital affect cost stickiness? Evidence from China

Cheng, S., Jiang, W. and Zeng, Y. (2018) Does access to capital affect cost stickiness? Evidence from China. Asia-Pacific Journal of Accounting and Economics, 25 (1-2). pp. 177-198. ISSN 2164-2257 doi: 10.1080/16081625.2016.1253483

Abstract/Summary

We study the effect of limited access to capital on firm cost stickiness, using data from a large sample of Chinese private firms over 1998-2007. Our results show that on average SG&A costs are anti-sticky. For firms in regions with lower levels of financial development, SG&A costs have lower sensitivity to sales increases and exhibit lower stickiness. Overall our findings suggest access to capital as an important determinant of cost stickiness.

Item Type	Article
URI	https://reading-clone.eprints-hosting.org/id/eprint/67567
Identification Number/DOI	10.1080/16081625.2016.1253483
Refereed	Yes
Divisions	Henley Business School > Finance and Accounting
Publisher	Taylor & Francis
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