STICKY SELLING, GENERAL, AND ADMINISTRATIVE COST BEHAVIOR AND ITS CHANGES IN JAPAN

Daoping (Steven) He, Jenny Teruya and Takashi Shimizu

Global Journal of Business Research, 2010, vol. 4, issue 4, 1-10

Abstract: This study examines whether Japanese firms’ selling, general, and administrative costs are sticky. We also investigate the determinants of cost stickiness in Japan and test whether Japanese managers changed their cost behavior after the stock market collapse in 1990. We find that similar to US firms, Japanese firms also demonstrate sticky selling, general, and administrative cost behavior; however, the stickiness of selling, general, and administrative costs in Japan is less likely to be adjusted due to temporary changes in their performance. We also find that there is a significant decrease in the magnitude of stickiness in Japan after the asset bubble burst, showing that Japanese managers adjusted their cost behavior in the post-bubble era.

Keywords: Cost behavior; Japanese firms (search for similar items in EconPapers)
JEL-codes: M40 (search for similar items in EconPapers)
Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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