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Cost Stickiness: Analysis and Determinants. Case Study of Saudi Companies
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
Theoretical Economics Letters·Volume 11 (2021)·Pages 239–248·Published 5 March 2021·DOI10.4236/tel.2021.112017
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Abstract
This paper examines the existence of cost stickiness of KSA firms using the ABJ model. By analyzing accounting data of 12 selected Saudi companies from 2010 to 2019, the results show the existence of cost stickiness in COGS more than SGA Expenses. Furthermore, a low level of debts and a high Cash-Flow ratio are associated with cost stickiness in Saudi companies.
KeywordsCost StickinessSellingGeneral and Administrative CostsCost of Goods SoldCost BehaviorSaudi Companies
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