Sticky Costs and Anti-Sticky Costs
An Analysis From The Macro Accounting Perspective of Economic Cycles
DOI:
https://doi.org/10.16930/2237-766220253607Keywords:
Asymmetric cost behavior, Sticky costs, Anti-sticky costs, Economic cyclesAbstract
This study analyzed the asymmetric behavior of costs in Brazilian publicly traded companies during different phases of the economic cycle. The methodology is characterized as descriptive, documentary, and quantitative research. The sample comprised 184 companies from 2010 to 2023. To analyze the asymmetric behavior of costs, the model proposed by Anderson et al. (2003) was applied, while the phases of the economic cycle (contraction, recovery, recession, and expansion) were identified based on Schumpeter’s (1939) methodology. The distinction between economic cycle phases was made using the real GDP growth rate. In each phase, cost asymmetry was separately analyzed for Cost of Goods Sold (COGS), Selling, General and Administrative Expenses (SG&A), and Total Cost (TC). During the contraction phase, asymmetry in the sticky direction was observed for TC. The recovery phase showed statistically significant anti-sticky behavior for both COGS and TC. In the recession phase, sticky behavior was identified in SG&A and TC. Finally, in the expansion phase, TC also exhibited sticky behavior. These results reveal that cost behavior varies according to the phase of the economic cycle, with identifiable sticky and anti-sticky patterns in different macroeconomic contexts. Therefore, it is concluded that economic cycles significantly influence managerial decisions related to the cost structure of Brazilian publicly traded companies.
References
Anderson, M. C., Banker, R. D., & Janakiraman, S. N. (2003). Are selling, general, and administrative costs “sticky”?. Journal of accounting research, 41(1), 47–63. https://doi.org/10.1111/1475-679X.00095 DOI: https://doi.org/10.1111/1475-679X.00095
Baltagi, B. H. (Ed.). (2015). The Oxford handbook of panel data. Oxford Handbooks. DOI: https://doi.org/10.1093/oxfordhb/9780199940042.001.0001
Balakrishnan, R., Petersen, M. J., & Soderstrom, N. S. (2004). Does capacity utilization affect the “stickiness” of cost?. Journal of Accounting, Auditing & Finance, 19(3), 283–300. https://doi.org/10.1177/0148558X0401900303 DOI: https://doi.org/10.1177/0148558X0401900303
Banker, R. D., Byzalov, D., Ciftci, M., & Mashruwala, R. (2014). The moderating effect of prior sales changes on asymmetric cost behavior. Journal of Management Accounting Research, 26(2), 221–242. https://doi.org/10.2308/jmar-50726 DOI: https://doi.org/10.2308/jmar-50726
Bubeck, S. K., & Hein, N. (2024). CEO duality and asymmetric behavior of operating costs. Contabilidad y Negocios, 19(37), 78–97. https://doi.org/10.18800/contabilidad.202401.004 DOI: https://doi.org/10.18800/contabilidad.202401.004
Burns, A. F., & Mitchell, W. C. (1946). The basic measures of cyclical behavior. In Measuring Business Cycles (pp. 115-202). NBER.
Chen, C. X., Lu, H., & Sougiannis, T. (2012). The agency problem, corporate governance, and the asymmetrical behavior of selling, general, and administrative costs. Contemporary Accounting Research, 29(1), 252–282. https://doi.org/10.1111/j.1911-3846.2011.01094.x DOI: https://doi.org/10.1111/j.1911-3846.2011.01094.x
Degenhart, L., Lunardi, M. A., da Silva Zonatto, V. C., & Dal Magro, C. B. (2021). Effect of Financial Restriction on Sticky Costs: Empirical Evidence from Brazil. Revista de Negócios, 26(1), 6–21. https://doi.org/10.7867/1980-4431.2021v26n1p6-21
Dierynck, B., Landsman, W. R., & Renders, A. (2012). Do managerial incentives drive cost behavior? Evidence about the role of the zero earnings benchmark for labor cost behavior in private Belgian firms. The Accounting Review, 87(4), 1219–1246. https://doi.org/10.2308/accr-50153 DOI: https://doi.org/10.2308/accr-50153
Fávero, L. P., & Belfiore, P. (2017). Manual de análise de dados: estatística e modelagem multivariada com Excel®, SPSS® e Stata®. Elsevier.
Fortunato, G., Funchal, B., & Motta, A. P. D. (2012). Impacto dos investimentos no desempenho das empresas brasileiras. Revista de Administração Mackenzie, 13, 75–98. https://doi.org/10.1590/S1678-69712012000400004 DOI: https://doi.org/10.1590/S1678-69712012000400004
Gujarati, D. N., & Porter, D. C. (2011). Econometria básica. (5. ed.). Amgh Editora.
Google Acadêmico (2024). Citações da obra “Business cycles” de Schumpeter (1939). https://scholar.google.com.br/scholar?hl=pt-BR&as_sdt=0%2C5&q=Schumpeter+%281939%29&btnG=
Hair, J. F., Black, W. C., Babin, B. J., Anderson, R. E., & Tatham, R. L. (2009). Análise multivariada de dados. (6. ed.). Bookman.
Ibrahim, A. E. A. (2015). Economic growth and cost stickiness: evidence from Egypt. Journal of Financial Reporting and Accounting. https://doi.org/10.1108/JFRA-06-2014-0052 DOI: https://doi.org/10.1108/JFRA-06-2014-0052
Ibrahim, A. E. A., Ali, H. M. H. O., & Aboelkheir, H. N. E. R. (2022). Cost stickiness: a systematic literature review of 27 years of research and a future research agenda. Journal of International Accounting, Auditing and Taxation, 46, 1–45. https://doi.org/10.1016/j.intaccaudtax.2021.100439 DOI: https://doi.org/10.1016/j.intaccaudtax.2021.100439
Ipeadata. (2024). Produto interno bruto (PIB) real. http://www.ipeadata.gov.br/exibeserie.aspx?serid=38414
Lande, E. (2000). Macro‐accounting and Micro‐accounting Relationships in France. Financial Accountability & Management, 16(2), 151–165. https://doi.org/10.1111/1468-0408.00102 DOI: https://doi.org/10.1111/1468-0408.00102
Malik, M. (2012). A review and synthesis of 'cost stickiness' literature. Available at SSRN: https://ssrn.com/abstract=2276760 DOI: https://doi.org/10.2139/ssrn.2276760
Medeiros, O. R. D., Costa, P. D. S., & Silva, C. A. T. (2005). Testes empíricos sobre o comportamento assimétrico dos custos nas empresas brasileiras. Revista Contabilidade & Finanças, 16(38), 47–56. https://doi.org/10.1590/S1519-70772005000200005 DOI: https://doi.org/10.1590/S1519-70772005000200005
Pamplona, E., Leite, M., & Costa da Silva Zonatto, V. (2018). Fatores associados ao comportamento dos custos em períodos de prosperidade e crise econômica em empresas dos países que compõem o PIIGS. Estudios Gerenciales, 34(148), 305–319. https://doi.org/10.18046/j.estger.2018.148.2603 DOI: https://doi.org/10.18046/j.estger.2018.148.2603
Paulo, E., & Mota, R. H. G. (2019). Ciclos econômicos e estratégias de gerenciamento de resultados contábeis: um estudo nas companhias abertas brasileiras. Revista Contabilidade & Finanças, 30, 216–233. https://doi.org/10.1590/1808-057x201806870 DOI: https://doi.org/10.1590/1808-057x201806870
Reis, L. S., & Borgert, A. (2018). Análise das pesquisas em comportamento dos custos. Custos e Agronegócio, 14(1), 184–210. http://www.custoseagronegocioonline.com.br/numero1v14/OK%209%20comportamento.pdf
Richartz, F., & Borgert, A. (2021). Fatores explicativos para o comportamento assimétrico dos custos das empresas listadas na B3. Revista Universo Contábil, 16(3). https://doi.org/10.4270/ruc2020313 DOI: https://doi.org/10.4270/ruc2020313
Schumpeter, J. A. (1939). Business cycles. New York: McGraw-Hill.
Weiss, D. (2010). Cost behavior and analysts’ earnings forecasts. The Accounting Review, 85(4), 1441–1471. https://doi.org/10.2308/accr.2010.85.4.1441 DOI: https://doi.org/10.2308/accr.2010.85.4.1441
Zonatto, V. C. D. S., Magro, C. B. D., Sant'Ana, C. F., & Padilha, D. F. (2018). Effects of economic growth in the behavior of sticky costs of companies belonging to BRICS countries. Contaduría y Administración, 63(4), 1–25. https://doi.org/10.22201/fca.24488410e.2018.1110 DOI: https://doi.org/10.22201/fca.24488410e.2018.1110
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 Revista Catarinense da Ciência Contábil
This work is licensed under a Creative Commons Attribution 4.0 International License.
The copyright for articles published in this journal belongs to the author (s), with first publication rights assigned to Revista Catarinense da Ciência Contábil. Due to appearing in this publicly accessible journal, articles are free to use, with mandatory recognition of the original authorship and initial publication in this magazine and for educational and non-commercial applications. The magazine chose to use published works for non-commercial purposes, including the right to submit or work for publicly accessible databases. The content of published articles is the sole and exclusive responsibility of the authors. - The author (s) authorize (s) a publication of the article in the journal; - The author (s) guarantee (s) that a contribution is original and unpublished and that it is not being evaluated in another magazine (s); - A magazine is not responsible for the opinions, ideas and concepts emitted in the texts, for the full responsibility of the author (s); - It is reserved to the editors or the right to make textual adjustments and to adjust the article to the publication rules.
This work is licensed under a Creative Commons Atribuição-NãoComercial-CompartilhaIgual 4.0 Internacional.
