The temporal impact of cost stickiness on firm value: An empirical study on companies listed in the Egyptian stock exchange | ||
| مجلة البحوث التجارية | ||
| Article 27, Volume 47, Issue 3, July 2025, Pages 3-33 PDF (814.54 K) | ||
| Document Type: تجاریة کل ما یتعلق بالعلوم التجاریة | ||
| DOI: 10.21608/zcom.2025.376803.1439 | ||
| Authors | ||
| تقى خالد عبدالحميد* 1; نعيم فهيم حنا1; أحمد محمد عبدالعزيز عبدالحميد2 | ||
| 1كلية التجارة | ||
| 2مدرس محاسبة كلية تجارة جامعة الزقازيق | ||
| Abstract | ||
| This study aims to investigate the impact of cost stickiness on firm value and whether this impact differs between the short-term and the long-term and across different cost categories. The study uses a sample of 99 firms from 2014- 2019 with 577 firm-year observations (87 observations for SG&A, 251 for COGS, and 239 for operating cost). Tobin's Q is used to measure firm value, while the cost stickiness is measured following the measurement of Weiss (2010). The findings indicate an impact of cost stickiness on firm value. This impact differs over the period (long-term versus short-term) and across different cost categories depending on whether the cost categories are related to the production process. SG&A cost stickiness has a negative impact in the short-term and has no significant impact in the long-term, while COGS stickiness has a positive impact in both the short and the long-term. Also, the operating cost stickiness has no significant short and long-term impact. | ||
| Keywords | ||
| cost stickiness; firm value; asymmetric cost behavior | ||
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