Does supply chain network centrality affect firm cost stickiness?

Yapan Liu and Ming Jin

Finance Research Letters, 2023, vol. 58, issue PB

Abstract: This study constructs a supply chain network for Chinese listed firms from 2009 to 2021 and investigates the influence of the firm’s supply chain network position on cost stickiness. Our findings reveal that the supply chain network centrality exacerbates cost stickiness by increasing adjustment costs and agency problems, this effect applies to firms in both industrial and services sectors, and remains valid whether before and after the COVID-19 pandemic. Furthermore, high-quality internal controls and external audits can mitigate the effect of supply chain network centrality on cost stickiness. This study enriches the determinants of cost stickiness literature by providing evidence at the supply chain network level.

Keywords: Cost stickiness; Supply chain network; Network centrality (search for similar items in EconPapers)
JEL-codes: G30 M41 Z13 (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:58:y:2023:i:pb:s1544612323008310

DOI: 10.1016/j.frl.2023.104459

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