Does access to capital affect cost stickiness? Evidence from China

Cheng, Shijun; Jiang, Wei; Zeng, Yeqin

doi:10.1080/16081625.2016.1253483

Does access to capital affect cost stickiness? Evidence from China

Cheng, Shijun; Jiang, Wei; Zeng, Yeqin

Authors

Shijun Cheng

Wei Jiang

Dr Yeqin Zeng yeqin.zeng@durham.ac.uk
Associate Professor

Abstract

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.

Citation

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

Journal Article Type	Article
Acceptance Date	Oct 15, 2016
Online Publication Date	Nov 15, 2016
Publication Date	Jan 10, 2018
Deposit Date	Sep 21, 2018
Publicly Available Date	Sep 26, 2018
Journal	Journal of Accounting and Economics
Print ISSN	1608-1625
Electronic ISSN	2164-2257
Publisher	Taylor and Francis Group
Peer Reviewed	Peer Reviewed
Volume	25
Issue	1-2
Pages	177-198
DOI	https://doi.org/10.1080/16081625.2016.1253483
Public URL	https://durham-repository.worktribe.com/output/1318556
Related Public URLs	http://centaur.reading.ac.uk/67567/

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Copyright Statement
This is an Accepted Manuscript of an article published by Taylor & Francis in Asia-Pacific Journal of Accounting & Economics on 15 Nov 2016, available online: http://www.tandfonline.com/10.1080/16081625.2016.1253483.