An Investigation of the Moderating Role of Egyptian Firm’s Characteristics on the Relationship between Costs Stickiness and Firm Profitability | ||
| المجلة العلمية للدراسات والبØوث المالية والتجارية | ||
| Article 7, Volume 4, Issue 1, January 2023, Pages 105-133 PDF (832.46 K) | ||
| Document Type: المقالة الأصلية | ||
| DOI: 10.21608/cfdj.2023.258039 | ||
| Author | ||
| نانسي Ù…Øمد Ù…Øمود اØمد | ||
| قسم المØاسبة کلية التجارة جامعة القاهرة | ||
| Abstract | ||
| This study seeks to investigate the effect of four firm’s characteristics on the degree of cost stickiness and to examine the moderating role of these characteristics on the relationship between cost stickiness and firm’s profitability in Egyptian manufacturing firms. The four-firm characteristics examined in this study are business strategy, ownership structure, assets intensity, and debt intensity. The financial data of this study were collected from the published annual reports for a sample of 64 Egyptian listed manufacturing firms during the period (2016-2020) with total observations of 259 firm-year. The measurement of cost stickiness in this paper is based on Anderson et al.’s (2003) cost stickiness model. Based on the multiple regression analysis used to test the two research models examined in this paper, the results provide evidence that asset intensity positively significantly affects cost stickiness, however, debt intensity negatively affects cost stickiness. In addition, asset intensity and debt intensity moderate the relationship between cost stickiness and a firm’s performance. | ||
| Keywords | ||
| Egypt; Sticky Costs; Selling; General; and Administrative Costs; Profitability; Firm Characteristics | ||
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