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Does access to capital affect cost stickiness? Evidence from China

Cheng, S., Jiang, W. and Zeng, Y. (2018) Does access to capital affect cost stickiness? Evidence from China. Asia-Pacific Journal of Accounting and Economics, 25 (1-2). pp. 177-198. ISSN 2164-2257

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To link to this item DOI: 10.1080/16081625.2016.1253483


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.

Item Type:Article
Divisions:Henley Business School > ICMA Centre
ID Code:67567
Publisher:Taylor & Francis


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