Financing constraints, internal control quality and cost stickiness

Autor:	Yufeng Chen, Yanbai Ma
Jazyk:	angličtina
Rok vydání:	2021
Předmět:	financing constraints financing sources cost stickiness adjustment cost cost management asymmetric cost behavior internal control quality Business HF5001-6182
Zdroj:	Journal of Business Economics and Management, Vol 22, Iss 5, Pp 1231-1251 (2021)
Druh dokumentu:	article
ISSN:	1611-1699 2029-4433
DOI:	10.3846/jbem.2021.14878
Popis:	Managers think that retaining resources is more effective than rebuilding resources after exhausting them. However, financing constraints have brought great uncertainty to this resource decision-making implemented by managers. Data of manufacturing listed firms in China from 2009 to 2017 are used here to explore the impact of financing constraints on cost stickiness. This paper finds that internal financing constraints have a significant promoting effect on cost stickiness, while debt financing constraints and equity financing constraints have a significant restraining effect on cost stickiness. The internal control quality has a moderation effect on this relationship. In a firm with low quality of internal control, internal financing constraints can enhance cost stickiness, but the weakening effect of external financing on cost stickiness is not affected by internal control quality.
Databáze:	Directory of Open Access Journals
Externí odkaz:	https://doaj.org/article/6674b3ecf73541ab8c2b833f2f29ab84 Zobrazit plný text záznamu View record in DOAJ Plný text ve formátu PDF