Operating leases, operating leverage, operational inflexibility and sticky costs

Douglas O. Cook, Robert Kieschnick and Rabih Moussawi

Finance Research Letters, 2019, vol. 31, issue C

Abstract: We show that a firm's operating lease expenses are the major driver of measures of a firm's operating leverage, operational inflexibility, and sticky costs. Moreover, we show that these expenses are an important determinant of a firm's asset volatility, and therefore has implications for the pricing of different securities.

Keywords: Operating leases; Operating leverage; Sticky costs (search for similar items in EconPapers)
JEL-codes: G12 G32 M41 (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:31:y:2019:i:c:s154461231830597x

DOI: 10.1016/j.frl.2018.12.012

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