The Impact of Sticky Cost Behavior on Earning Management | ||
| Horus International Journal for Commercial Research | ||
| Volume 1, Issue 4, November 2025, Pages 106-127 PDF (522.5 K) | ||
| Document Type: Scientific research | ||
| DOI: 10.21608/hjcr.2025.463636 | ||
| Authors | ||
| Ahmed Mounir1; Mostafa Elfeky2; Samy Nagdy3 | ||
| 1Accounting Department Faculty of Business Administration - Horus University | ||
| 2Accounting Department - Faculty of Commerce Mansoura University | ||
| 3Accounting Department - Faculty of commerce Mansoura University | ||
| Abstract | ||
| Purpose: This study investigates the marketing cost stickiness behavior for the manufacturing companies in different sectors in Egyptian Stock Exchange and its impact on the real earning management. Research methodology: To verify the hypotheses of this study, the asymmetry of cost and its impact on earning management was measured for a sample that used 144 firm-year data for 29 companies with a research period of 7 years (2017–2023). Results: The empirical analysis results are as follows. First: the existence of the marketing cost behavior stickiness when sales increase by 1%, costs increase by 0.422 percent, but with the equivalent decrease in sales the marketing cost decreased only by 0.14 percent. Second: there is significant positive effect of marketing cost stickiness on the real earning management partially through the cash flow, production cost models and the aggregate residuals of production cost and discretionary expenses model and no significant effect of marketing cost stickiness on the real earning management measured by the aggregate residuals of cash flow and discretionary expenses model. Suggestions for Future Research: the study focused only on analyzing the level of stickiness behavior for marketing cost. So, the researcher suggests that the future studies focus on analyzing the stickiness behavior for rest costs of the phases of supply chain individually. | ||
| Keywords | ||
| Sticky Cost; Real Earning Management & SG&A Expense | ||
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