Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/194251
Authors: 
Argilés-Bosch, Josep Maria
García-Blandón, Josep
Ravenda, Diego
Valencia-Silva, Maika M.
Somoza, Antonio D.
Year of Publication: 
2017
Citation: 
[Journal:] Estudios de Economía [ISSN:] 0718-5286 [Volume:] 44 [Year:] 2017 [Issue:] 1 [Pages:] 81-104
Abstract: 
This study analyses cost stickiness under the dilemma between current profitability and future sales increase. When activity decreases firms are faced to keep profitability adjusting resources, while they should also consider long term consequences and keep slack resources which allow building firms capacities to adapt to external challenges and take advantage of future opportunities. We find empirical evidence that changes in current firm profitability and one year ahead sales increase significantly influence resource adjustment in periods when sales decrease. We find a significant moderating effect of changes in profitability, as well as a significant stressing effect of one year ahead sales increase, on cost stickiness.
Subjects: 
Cost stickiness
profitability
increases in sales
slack
resource adjustment
JEL: 
M41
M21
M10
Creative Commons License: 
https://creativecommons.org/licenses/by-nc-sa/4.0/
Document Type: 
Article
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