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The Impact of Cost Stickiness on Saudi Firm’s Profitability
Department of Accounting, College of Business, University of Jeddah, Jeddah, Saudi Arabia
- 1 Department of Accounting, College of Business, University of Jeddah, Jeddah, Saudi Arabia
Modern Economy·Volume 14 (2023)·Pages 1820–1827·Published 8 December 2023·DOI10.4236/me.2023.1412095
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Abstract
This paper examines the impact of cost stickiness on firm performance for a sample composed of 110 listed companies in Saudi Arabia from 2017 to 2022. Data are estimated by the OLS regression analysis, and the Earnings per Share (EPS) ratio is used as a proxy to estimate firms’ performance. The results show a negative correlation between cost stickiness and performance. Furthermore, the results indicate that for industrial firms, age and size are positively cor related with performance. On the other hand, for commercial and service companies, a high level of debt is related to low performance.
KeywordsCost StickinessEarnings per Share (EPS)Saudi Companies
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