• Journal of Digital Convergence
• /
• v.17 no.12
• /
• pp.109-115
• /
• 2019

The purpose of this study is to analyze the effect of Prior Sales change on R&D Costs and each detail item, and to analyze what decision managers make when changing sales. In order to conduct a more in-depth analysis as well as a one-period model of Anderson et al. (2003), which was used in previous studies, the two-period model of Banker et al.(2014) And analyzed the detailed items. As a result of the analysis, it is possible to confirm cost stickiness behavior only in the depreciation cost and others due to the limit of the model in the one period model. For a more in-depth analysis, the analysis of two-period model showed that labor costs and other items showed cost stickiness behavior when prior sales increased, but total R&D costs showed a anti-cost stickiness behavior. When prior sales decline, consigned service costs showed a cost stickiness behavior. This study is meaningful because it analyzed the effect of prior sales change on R&D cost behavior which were not performed in previous studies. Furthermore, we expect to be able to conduct more detailed research by sales and industry in future studies.

• Asia-Pacific Journal of Business
• /
• v.12 no.3
• /
• pp.397-415
• /
• 2021

Purpose - The purpose of this study is to analyze the cost behavior of firms, taking into account both high R&D intensity and situations in which R&D activities are likely to be performed efficiently. Design/methodology/approach - During the sample period from 2002 to 2019, regression analysis is conducted on the manufacturing firms with December fiscal year listed on KOSDAQ. The degree of R&D expenditure was measured by R&D intensity. The efficient R&D situation is measured as the decline stage firms in the KOSDAQ market, which are relatively smaller than the KOSPI market. Findings - Firms in the decline phase and high R&D intensity showed the cost stickiness. Because these firms anticipate an optimistic future, they do little to cut current costs even if their current sales decrease. Research implications or Originality - Firstly, it is confirmed that both the extent of R&D expenditure and the situation in which R&D will be effectively performed are important in the study of cost behavior. Secondly, we present a new perspective on strategy research that favors the use of cost advantage strategy related to cost anti-stickiness for the decline firms.

• Journal of Industrial Convergence
• /
• v.20 no.9
• /
• pp.25-38
• /
• 2022

The purpose of this paper is to verify the cost behavior of non-listed companies in Mongolia from 2013 to 2018. And we investigate the relationship between cost behavior and earnings management. Earnings management was measured using the Big-Bath and avoiding loss incentives. Big-Bath suspected firms report a very large loss and avoiding loss suspected firms have a bite profit. The results of this study are as follows. First, non-listed firms in Mongolia, operating costs(oc) and selling, general and administrative(sga) costs show the cost stickiness. Second, cost stickiness was different depending on the earnings management. The suspected avoiding loss firms have upward earnings management incentives, operating costs and sga costs all present anti-cost stickiness. The suspected big bath firms strengthen the cost stickiness of operating costs and sga costs. This study is meaningful in that it first analyzed the relationship between earnings management and cost stickiness of non-listed firms in Mongolia using empirical data. It will be meaningful in that it provides relevant information to those interested in research and investment.

• Journal of the Korea Academia-Industrial cooperation Society
• /
• v.20 no.10
• /
• pp.452-458
• /
• 2019

The purpose of this study is to analyze how managers' reporting choices affect asymmetric cost behaviors in manufacturing firms in Korea and Japan. In order to analyze the contents, SG&A, COGS, and operating expenses (OE), which were the targets of the previous studies, were analyzed using the operating costs paid in cash (OC) and the operating expenses before depreciation (OEBD) proposed by Shust and Weiss (2014). The differentiation of cost behavior was analyzed. The analysis revealed, first, that both Korea and Japan showed the difference between cost behavior of OE and OC. Specifically, the cost stickiness of OC was higher than that of OE. In particular, it showed that Korea firms have a higher intensity of tangible fixed assets that are weakening the cost stickiness compared to Japanese firms. Second, the occurrence of depreciation costs weakens the cost stickiness in both countries. Lastly, the higher the debt ratio, the more aggressively the cost reduction of Japanese companies. We hope that this study will help to improve the relationship between the two countries at the academic level when the Korea-Japan relationship cools down.