Product market competition and cost stickiness: Evidence from China

Jia Li and Zhengying Luo

Managerial and Decision Economics, 2021, vol. 42, issue 7, 1808-1821

Abstract: Product market competition affects management's resource allocation and cost adjustment decisions. It also affects cost stickiness. This paper looks at the impact of product market competition on cost stickiness in different economic environments. Using quasi natural experiment and the samples in Chinese capital market, this paper analyzes and tests these questions. We conclude that (1) in emerging markets, product market competition reduces cost stickiness. (2) For enterprises with differentiation strategy, the impact of product market competition on cost stickiness is not significantly weakened. (3) For enterprises with state‐owned property rights, the impact of product market competition on cost stickiness is significantly weakened. In addition, financial strength and industry competitive position also weak the impact of product market competition on cost stickiness.

Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

Downloads: (external link)
https://doi.org/10.1002/mde.3346

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wly:mgtdec:v:42:y:2021:i:7:p:1808-1821

Access Statistics for this article

Managerial and Decision Economics is currently edited by Antony Dnes

More articles in Managerial and Decision Economics from John Wiley & Sons, Ltd.
Bibliographic data for series maintained by Wiley Content Delivery ().