The Effect of Export on R&D Cost Behavior: Evidence from Korea

고창열,정훈 한국무역학회 2022 Journal of Korea trade Vol.26 No.5

Purpose – This research intends to find out whether R&D cost stickiness shows differentiated aspects depending on exports in Korea. A cost behavior that indicates a lower rate of costs decrease when sales decrease than the rate of costs increase when sales increase is called cost stickiness. This sticky cost behavior is caused by considering the adjusting costs. This study aims to empirically verify that R&D cost stickiness is greater in export firms than in non-export firms. We also investigate the effect of exports on R&D cost stickiness is nonlinear. Design/methodology – We obtain data for the analysis from Kis-Value and TS2000 from 2012 to 2020. This study tests for R&D cost stickiness of exports using the cost stickiness model developed by Anderson et al. (2003) that is used in a lot of prior literature. To explore the nonlinear behavior of R&D cost stickiness we include a quadratic term of exports in our model. Findings – The results of our analysis are as follows. First, we observed that R&D costs of export firms are more sticky than that of non-export firms. Our result indicated that export firms are less likely to reduce R&D costs in decreasing sales periods in preparation for future sales recovery. Second, our empirical evidence shows that export firms view R&D costs much favorably. However, we hypothesize that the effect of export intensity on R&D costs may not necessarily be linear. Our result shows the effect of exports intensity on R&D stickiness is thus nonlinear, forming a reverse U-shaped curve. When export intensity exceeds a certain threshold, the growth rate of R&D costs appears to be viewed negatively. Firms with relatively high export intensity do not support R&D costs, viewing them as taking away firms’ resources from other more productive costs. On the contrary, those with export intensity under the threshold view R&D costs as beneficial and therefore promote further R&D costs when revenue decreases. Originality/value – The results of this research can contribute academically to the expansion of empirical research on R&D cost stickiness. R&D cost stickiness varies by industry. As a result of our research, the managers of export firms recognize the importance of R&D to lead innovation. We expected that this research contributes to further studies on R&D costs and cost stickiness. Second, this research has implications from a business perspectives. Our findings of export firms’ R&D stickiness suggest that export firms’ managers should consider keeping the stickiness of R&D when revenue decreases because it is essential for exporting firms to maintain their R&D stickiness to secure longterm competitiveness. R&D stickiness can be used on a practical basis to emphasize the need for continuous investment in exporting firms’ R&D activities.

Cost Stickiness, Firm Value, and the Effect of Managerial Ability

Sungmin Jeon(전성민),Jinbae Kim(김진배) 한국국제회계학회 2021 국제회계연구 Vol.- No.100

[연구목적] 본 연구는 원가 하방경직성이 기업의 조정비용에 따라 기업 가치에 미치는 영향이 달라지는지 분석하고, 경영자 능력이 원가 하방경직성과 기업 가치와의 관계에 어떠한 영향을 미치는지 살펴본다. 원가 하방경직성은 원가행태로서 기업의 경영 전략의 중요한 부분을 차지하고 있지만, 이러한 원가 하방경직성이 기업의 가치에 미치는 영향에 관한 연구가 많이 이루어지지 않았다. 이에 본 연구는 원가 하방경직성이 기업의 조정비용에 따라 기업 가치에 미치는 영향이 달라지는지 확인하고, 이러한 관계에 경영자의 능력은 어떠한 영향을 미치는지 살펴본다. [연구방법] 본 연구는 1998년부터 2008년까지 미국 상장 기업을 대상으로 분석을 수행하였으며 Weiss (2010)의 원가 하방경직성 측정방법을 사용하여 기업 가치(Tobin"s Q)에 미치는 영향을 분석하였다. 또한 Demerjian et al. (2012)가 제시한 방법을 사용하여 경영자 능력을 측정하였다. [연구결과] 분석결과, 원가 하방경직성을 보이는 기업일수록 더 낮은 기업가치를 가지며 이러한 관계는 조정비용에 따라 달라지는 것으로 나타났다. 원가 하방경직성과 기업가치 간의 음(-)의 관련성은 조정비용이 낮은 그룹에서 나타났다는데, 이는 원가 하방 경직성이 대리인 비용으로 인해 발생한 것이므로 기업 가치에 부정적인 영향을 미치는 것을 의미한다. 또한 조정비용이 높은 그룹에서 발생하는 원가 하방 경직성은 그 원인이 조정비용과 대리인 비용 모두 혼재되어 있으므로 기업가치에 미치는 영향이 달라지는 것을 확인할 수 있다. 또한, 경영자의 능력이 높을수록, 원가 하방경직성의 음(-)의 효과가 감소하는 것으로 나타났다. [연구의 시사점] 본 연구는 경영자의 전략적 선택으로 이루어진 원가 행태가 기업 가치에 어떠한 영향을 미치는가를 실증분석했다는 점에서 의의가 있다. 또한, 원가 하방경직성을 발생 원인에 따라 구분하여 원가 하방경직성이 기업가치에 미치는 영향이 달라질 수 있음을 제시하였다. [Purpose] This paper intends to identify the effect of cost stickiness on firm value depending on firm specific adjustment cost and analyze how managerial ability affects the relation between cost stickiness and firm value. Although cost stickiness is an essential part of a firm"s business strategies, the association of cost stickiness and the firm value are nearly unknown. Thus, this study shows that the cost stickiness differently affects firm value depending on the firm characteristics. [Methodology] The sample consists of companies for which financial data are available among U.S. listed companies between 1998 and 2018. Using the cost stickiness measure by Weiss (2010), we test whether cost stickiness is associated with a firm value(Tobin’s Q) and whether this relation is affected by managerial ability measured by Demerjian et al. (2012) model. [Findings] We find that there is a significant negative relationship between cost stickiness and firm value only in the lowest adjustment cost group. This result indicates that firm value with a low level of adjustment cost decrease as the cost stickiness increases because this cost stickiness occurs from an agency problem. But for the firms with high adjustment costs, the two motivations, adjustment cost, and agency problem, are mixed for the cost stickiness. Furthermore, if firms’ managers have high abilities, the managerial ability mitigates the negative relation between firm value and cost stickiness. [Implications] This study has contributed to the empirical analysis of the effect of managerial deliberate cost behavior on firm value. In addition, by using managerial ability measures by Demerjian et al. (2012), we show that managerial characteristics can affect firm value through the cost behavior strategy. Furthermore, we try to identify whether cost stickiness primarily reflects rational resource management or an agency problem and study how observed cost stickiness affects the firm value.

원가하방경직성이 미래 실업률에 미치는 영향

오상희,이진수 한국세무회계학회 2022 세무회계연구 Vol.- No.72

[Purpose]This study examines whether it is possible to predict the future unemployment rate, taking into account the cost asymmetry behavior, that is, whether the manager will reduce or increase costs when sales decrease. [Methodology]We use a regression model to test the hypothesis about cost stickiness. The prediction of the unemployment rate is based on the study of Florent et al.(2018). The dependent variable, the unemployment rate, was measured as the change in the future quarterly actual unemployment rate, and future time points were set from t+1 to t+4. The independent variable, cost stickiness was measured by applying the Anderson et al.(2003) model. [Findings]Summarizing the results, it was found that the downward cost stickiness in the current quarter has an effect in the direction of reducing the unemployment rate in all future quarters. From the perspective of corporate managers, it is judged that cost stickiness with the recovery of future operations in mind works to mitigate the increase in the unemployment rate, even if sales in the current quarter decrease. Alternatively, the burden of adjustment costs causes downward stickiness in costs, which in turn leads to a decrease (moderate increase) in the unemployment rate. [Implications]The significance and differentiation of this study has a contribution in that it links the downward stickiness of costs with the unemployment rate, which is a major variable in macroeconomic conditions. Previous studies lacked such studies, and it is considered a timely study even at a time when the unemployment rate is increasing recently, such as COVID-19. However, the limitation of this study is that it does not include a larger number of samples, making it somewhat difficult to generalize the study.[Purpose]This study examines whether it is possible to predict the future unemployment rate, taking into account the cost asymmetry behavior, that is, whether the manager will reduce or increase costs when sales decrease. [Methodology]We use a regression model to test the hypothesis about cost stickiness. The prediction of the unemployment rate is based on the study of Florent et al.(2018). The dependent variable, the unemployment rate, was measured as the change in the future quarterly actual unemployment rate, and future time points were set from t+1 to t+4. The independent variable, cost stickiness was measured by applying the Anderson et al.(2003) model. [Findings]Summarizing the results, it was found that the downward cost stickiness in the current quarter has an effect in the direction of reducing the unemployment rate in all future quarters. From the perspective of corporate managers, it is judged that cost stickiness with the recovery of future operations in mind works to mitigate the increase in the unemployment rate, even if sales in the current quarter decrease. Alternatively, the burden of adjustment costs causes downward stickiness in costs, which in turn leads to a decrease (moderate increase) in the unemployment rate. [Implications]The significance and differentiation of this study has a contribution in that it links the downward stickiness of costs with the unemployment rate, which is a major variable in macroeconomic conditions. Previous studies lacked such studies, and it is considered a timely study even at a time when the unemployment rate is increasing recently, such as COVID-19. However, the limitation of this study is that it does not include a larger number of samples, making it somewhat difficult to generalize the study. [연구목적]본 연구는 원가의 비대칭적 행동 즉 경영자가 매출이 감소 할 경우 원가를 감소 혹은 증가할 것인지를 염두에 두고, 미래 실업률을 예측하는 것이 가능한지를 살펴보는 것이다. [연구방법]원가 경직성과 실업률의 예측에 관한 가설을 검증하기 위한 모형은 Florent et al.(2018)의 연구를 바탕으로 회귀분석을 수행한다. 종속변수인 실업률은 미래의 분기별 실제 실업률의 변화분으로 측정하고, 미래시점은 t+1부터 t+4기 까지 설정하였다. 독립변수인 원가하방 경직성은 Anderson et al.(2003)모형을 적용하여 측정하였다. [연구결과]결과를 요약하면, 당 분기의 원가하방경직성은 미래의 모든 분기에서 실업률을 줄이는 방향으로 영향을 미치는 것으로 나타났다. 이러한 결과는 기업의 경영자 입장에서 당분기의 매출액이 감소하더라도, 미래 조업도 회복을 염두에 둔 원가경직성이 실업률의 증가를 완화시키는 것으로 작용한다고 판단된다. 혹은 조정비용의 부담으로 인하여 원가의 하방 경직성이 발생하고, 이는 결국 실업률의 감소(증가의 완화)로 이어진다고 할 수 있는 것이다. [연구의 시사점]본 연구의 의의 및 차별성은 원가의 하방 경직성을 거시경제의 주요 변수인 실업률과 연계 시킨점에서 공헌점을 가진다. 이전의 연구에서는 이러한 연구가 부족했으며, COVID 19 등 최근 실업률이 증가하고 있는 시점에서도 시의 적절한 연구라도 생각된다. 다만 본 연구의 한계점은 보다 많은 표본을 포함하지 못해, 연구를 일반화 하기에 다소 무리가 있다는 점을 한계점으로 들 수 있다.

기업의 경영전략이 원가비대칭성에 미치는 영향

김새로나,최규담,유현수 한국공인회계사회 2016 회계·세무와 감사 연구 Vol.58 No.4

This paper investigates whether cost stickiness is affected by business strategy where the tone at the top management is implemented. We also examine whether earnings transparency controls the association between business strategy and cost stickiness. One aspect is that the firms with prospector-type business strategy are likely to maintain excess resources even hough their revenues are turned to be declined (i..e, the prospector group is higher in the cost stickiness) since the top management of such prospector have more optimistic future revenue expectations from the new technologies and new markets that they are seeking. In particular, Banker et al.(2014) documented evidence that firms pursuing a differentiation strategy Porter(1980, 1996)’s typology (similar to prospector of Miles and Snow(1978, 2003)’ typology) show greater cost stickiness as compared to firms pursuing a cost leadership (similar to defender) strategy. Accordingly, we hypothesize that the firms approaching prospector-type exhibit greater cost stickiness than defenders (Hypothesis 1). Furthermore, we test whether firm’s earnings transparency helps to mitigate this cost stickiness (i.e., firms with higher earnings transparency show more flexible cost behaviors) and thus strengthen the negative (-) association between business strategy index (which is higher when a firm falls into prospector group) and cost stickiness (Hypothesis 2). Contrary to our expectation, the results show that prospectors are more flexible in their cost behaviors (i.e., less cost sticky) than the defenders meaning that prospectors are more likely to promptly reduce the excessive resources when their revenues are declining. These results are arising from the features of typology of Miles and Snow(1978, 2003). Miles and Snow(1978, 2003) stress the points that (i) prospectors’ organization structure focus on product groups and dominant coalition is transitory, (ii) executive and employee tenure not lengthy, (iii) managers tend to be hired from outside and (iv) investment is more focused on human capital rather than tangible assets, whereas (i) defenders’ organization structure focus on functional divisions and the dominant coalition is lengthy, (ii) executive and employee tenure is lengthy, (iii) managers are promoted from within the firm and (iv) investment is more focused on tangible assets for efficiency purpose. We also find out that earnings transparency strengthen the negative (-) relationship between business strategy and cost stickiness. prospectors with higher earnings transparency show more flexible cost behaviors defenders with higher earnings transparency are less cost sticky that more those with lower earnings transparency. The study contributes to our understanding of cost behaviors (i.e., cost stickiness) by documenting that cost stickiness becomes lower with prospector groups and that the negative (-) association between business strategy and cost stickiness are even strengthened with the level of firms’ earnings transparency. Overall, our results suggest that the management’s cost behavior may differs across their business strategy. 본 연구는 원가의 비대칭성이 기업의 개별 특성 정보가 아닌 최고경영자의 성향이 반영된 포괄적인 정보인 경영전략에 의해 설명될 수 있는지에 대하여 실증적으로 분석하였다. Miles and Snow (1978, 2003)의 경영전략이론에 따르면, 선도형 경영전략을 추구하는 기업은 자체적인 연구개발과 시장개척 노력으로 스스로 새로운 시장을 만들어 내고 그 시장에서 ‘최초’가 되고자 하는 특성을 가지고 있지만 그러한 목표를 달성하지 못할 위험과 불확실성 또한 부담한다. 반면, 방어형은 건전하고, 안정적이며, 예측가능한 영역에서 규모의 경제를 달성하는데 더 중점을 두고 있다. 원가행태에 관한 선행연구는 매출감소 시 경영자의 대응방식이나 경영자의 사익추구에 따라 다르게 나타날 수 있다고 하였는데, 본 연구는 이러한 선행연구를 확장하여 기업이 어떤 경영전략을 추구하느냐에 따라 잉여자원에 대한 의사결정 방식에 차이를 보이는지 분석한 것이다. 또한, 이익투명성 수준이라는 기업이 처한 제반환경을 고려하여 경영자가 추구하는 경영전략이 원가행태에 미치는 영향을 분석하였다. 본 연구는 2003년부터 2012년까지 한국거래소에 상장되어 있는 금융업을 제외한 12월 결산법인을 표본으로 가설을 검증하였다. 주요 실증분석 결과는 다음과 같다. 첫째, 경영자가 추구하는 경영전략이 선도형에 가까울수록 매출 감소 시 잉여자원에 대한 조정의 의사결정을 내려 하방탄력적 원가행태를 보였고, 방어형에 가까울수록 하방경직적 원가행태를 보였다. 둘째 이익투명성 수준을 고려하여 경영전략이 원가행태에 미치는 영향을 분석한 결과, 이익투명성이 낮은 기업에서는 경영자가 선도형 경영전략을 추구할수록 하방경직적 원가행태를 보였다. 반면 이익투명성이 높은 기업집단에서는 선도형 경영전략일수록 원가행태에 있어 더 하방탄력적인 경향을 보였다. 본 연구는 경영전략에 따른 원가행태를 분석함으로써 원가행태를 설명하는 요소로 최고경영자의 특성이 반영된 경영전략으로 연구를 확장하였다는 점에서 의의가 있다.

원가하방경직성과 회사채 신용등급의 관계에 관한 연구

김태성(Kim Tae-sung),이진수(Lee Jin-soo),김도연(Kim Do-youn),신흥권(Shin Hung-kwon) 한국국제회계학회 2015 국제회계연구 Vol.0 No.63

본 연구에서는 원가하방경직성과 회사채 신용등급 간의 관련성에 대해 검증하였다. 선행연구에 따르면 원가하방경직성이 존재하면 이익지속성이 낮아지는 등 회계정보의 질이 낮아지며, 신용평가기관은 기업의 신용등급 평가 시 경영자가 행하는 이익조정 혹은 이익의 질을 고려한다는 결과를 토대로 원가하방경직성이 존재할수록 신용등급은 낮아지는지를 분석하였다. Weiss(2010)의 모형을 토대로 실증분석한 결과, 원가하방경직성이 클수록 회사채 신용등급이 낮은 것으로 나타났다. 이는 신용평가기관에서는 원가하방경직성의 정도에 따라 회계이익의 질을 차별적으로 판단하고 있으며 이를 신용등급에 반영하고 있음을 의미한다. 그리고 또한 우수한 기업 지배구조가 구축되어 있다면 효율적으로 대리인문제를 통제함으로써 원가하방경직성에 영향을 미친다는 선행연구도 제시되고 있다. 이에 외국인지분율로 측정한 지배구조에 따라 원가하방경직성이 신용등급에 미치는 영향이 차별적으로 나타나는지를 살펴본 결과, 외국인투자자는 대리인문제를 효율적으로 통제하는 기능을 수행함으로써 원가의 하방경직성이 신용등급에 미치는 음(-)의 영향을 완화시키는 것으로 나타났다. 이는 외국인투자자는 대리인문제를 효율적으로 통제하는 기능을 수행함으로써 외국인지분율과 원가하방경직성은 신용등급에 긍정적인 영향을 미치고 있음을 의미한다. 그리고 Homburg and Nasev(2008)의 모형을 이용하여 실시한 추가분석의 결과 또한 이와 다르지 않았다. 본 연구는 원가행태에 관한 정보를 신용평가기관의 관점에서 살펴봄으로써 경영자의 전략적 원가관리(strategic cost management)를 신용평가기관의 관점에서 살펴본 최초의 연구라는 점에서 의의를 들 수 있다. 또한 신용평가기관이 원가와 관련하여 신용등급을 산정하고 있음을 보여줌으로써 원가하방경직성과 전략적 원가관리를 신용평가기관이 인지하고 있다는 근거를 제공할 것이다. This research is based on the relation between cost stickiness and bond credit ratings. According to prior research, if the cost stickiness exists, earnings persistence and the quality of accounting information can fall. The credit-rating agencies are known to consider firms’ earnings management and quality of earnings. Based on it, this paper exams whether the cost stickiness decrease the firms’ bond credit rating or not. According to Weiss(2010)’s cost stickiness model, it appears that when the cost stickiness increases, companies’ credit -rating decreases. This result means that credit-rating agencies judge earnings quality by the extent of firms’ cost-stickiness and reflect the level of stickiness in making decisions of the firms’ bond credit rating. In addition, as the previous studies suggest, when there is a good corporate governance, it may control the agency problems effectively so, the good corporate governance may affect the cost stickiness positively. In order to look over the moderating effect of the corporate governance on the relation between cost stickiness and bond credit ratings. we use the ratio of foreign investors as the corporate governance. The result is that the good corporate governance(foreign ownership measurement) has a positive impact on the relation between cost stickiness and bond credit ratings. It means that foreign investors has the function to control and manage agency problems effectively. Therefore, this empirical analysis adds value to the recent studies not only on firms’ credit-rating but also on company’s cost stickiness. It can also provided a basis on how strategic cost management relates to credit-rating. classified by group differs on p<.05 significant level.

경영자의 낙관주의적 오류와 비대칭적인 원가행태

양대천 ( Daecheon Yang ),구정호 ( Jeong-ho Koo ) 한국회계학회 2016 회계저널 Vol.25 No.6

원가의 비대칭성의 유발 원인을 규명하는 연구들은 크게 두 개의 조류로 전개되고 있다. 하나는 대리인(agency)적 설명이고 다른 하나는 경영자 기대(managerial expectation)적 설명이다. 두 번째 관점인 경영자의 기대적 설명은 미래 매출에 대한 경영자의 성장기대로 인해 하방경직적인 원가행태가 유발 또는 강화된다는 관점이다. 최근 경영자의 합리적 성장기대에서 나아가 경영자의 과도확신(managerial overconfidence)이나 낙관주의(optimism) 등 행동심리학적 편견에 초점을 맞추어, 하방경직적 원가행태의 유발원인을 보다 근원적으로 규명하고자 하는 연구들의 실증결과들이 제시되고 있다. 본 연구는 경영자 기대적 설명과 맥락을 같이하는 행동회계적 입장에서, 경영자가 미래 성과에 대해 가지는 낙관적 기대 오류나 편견이 원가의 하방경직성을 유발하거나 강화하는지를 규명하고자 한다. 행동회계적 관점에서 경영자의 과도확신이나 낙관주의 대용치의 선정이 중요한데, 본 연구는 경영자의 낙관주의 오류에 대한 측정치로, 경영자의 예측오류를 이용한 Lin et al. (2005)의 대용치를 이용하여 경영자의 낙관주의를 자본시장에서 현시적으로 측정하여 비대칭적인 원가행태와의 관련성을 고찰한다. 나아가, Lin et al. (2005)의 대용치가 가지는 시차문제의 한계를 지적하면서, 이러한 문제를 완화시킬 수 있는 경영자와 재무분석가의 예측치 오차를 채택하여 보다 강건성 있는 실증분석을 수행한다. 뿐만 아니라, 과거 성공적인 경영자가 가질 수 있는 학습 및 자기본위편향(Learning and self-attribution bias)을 반영한 보다 강화된 낙관주의 대용치를 적용하여 추가적 분석을 수행한다. 분석결과, 첫째, 경영자가 낙관적 기대 오류를 가질 때 판매관리비, 매출원가, 총원가 모두 하방탄력적인 원가행태를 완화시키는 것으로 나타났다. 이러한 결과는 대체적인 낙관주의 대용치에도 일관되게 나타났다. 즉, 경영자의 낙관적 기대가 있을 때 매출이 감소할지라도 원가를 적극적으로 감소시키지 않는 유인임을 제시하는 것이다. 둘째, 개별기업 수준에서 하방경직성을 측정하고 복잡한 상호작용변수의 문제를 완화하기 위해 Homburg and Nasev (2008) 원가모형을 이용한 결과, 이전의 모형들과 유사한 결과들을 보이고 있다. 마지막으로, 과도한 낙관주의를 이용한 추가분석에서, 경영자가 과거의 성공적인 성과로 인해 미래 성과에 대해 과도한 낙관적 기대를 가질 때 비대칭적인 원가행태에 더욱 강화되는 결과를 보였다. 본 연구의 결과들은 기존 행동회계적 관점에서의 경영자의 과도확신이나 낙관주의를 자본시장에서 현시적으로 측정하되 시차문제를 완화하고, 보다 과도한 낙관주의 대용치를 고려하여 보다 강건한 증거를 제시한다는 점에서 기존 문헌을 보완한다. With respect to the cause of sticky costs, some streams of the literature focused on the effect of private managerial incentives on cost stickiness. After Anderson et al. (2003) proposed that sticky costs result from the agency problem, Chen et al. (2012) provided empirical evidence that empire-building incentives arising from the agency problem move the sales, general, and administrative (SG&A) cost asymmetry away from its optimal level. Balakrishnan and Gruca (2008), Kama and Weiss (2012), and Dierynck et al. (2012) insisted through case studies that sticky costs are derived from managers` private incentives. Balakrishana et al. (2014) provided related evidence by focusing on short-run managerial incentives. A recently popular stream of the literature (i.e., Banker and Chen, 2006a; Banker and Byzalov, 2013; Banker et al., 2013; Chen et al., 2013; Banker et al., 2014) adopted an explanation for managerial expectations, as first noted by Anderson et al. (2003), which stated that SG&A stickiness could intensify during periods of economic growth. Recently, behavioral finance and accounting researchers have become interested in the implications of managerial overconfidence for managers` decision-making. Overconfidence is a well-documented phenomenon in psychology (Allen and Evans, 2005). In particular, managerial overconfidence and optimism has had popular appeal as an explanation for asymmetric cost behavior (e.g., Banker and Chen, 2006a; Banker and Byzalov, 2013; Banker et al., 2013; Chen et al., 2013; Banker et al., 2014; Yang, 2015). Banker et al. (2014) explain a complex pattern of sticky costs by combining two opposing processes (cost stickiness conditional on a prior sales increase and cost anti-stickiness conditional on a prior sales decrease) that reflect the structure of optimal decisions and the impact of managers` optimism. Chen et al. (2013) describe that SG&A cost stickiness increases as the degree of managerial overconfidence increases. Yang (2015) describe that optimistic bidder CEOs who overestimate the merged firm`s growth induce greater cost stickiness. This study aims to complement the behavioral accounting literature on the impact of managerial optimistic biases on resource allocation decisions. The primary studies in this area focused on the effect of managerial incentives on sticky costs as a managerial expectation explanation (e.g., Banker and Chen, 2006a; Banker and Byzalov, 2013; Banker et al., 2013; Chen et al., 2013; Banker et al. 2014). In particular, the rapidly growing literature aforementioned (e.g., Chen et al., 2013; Yang, 2015) suggested an overconfidence explanation for sticky costs from the behavioral perspective. In this context, we examine the impact of managerial optimistic bias on sticky cost behavior by using Lin et al. (2005)`s measure as a proxy of the managerial optimism. Hence, the proxy of the managerial optimism employed by Lin et al. (2005) may fail to reflect time interval between forecastingand actual period. To mitigate this problem, we employ the difference between management`- and analyst`s sales forecast as a managerial optimistic bias. Further, we additionally adopt the measure of strong managerial optimism reinforced by learning and self-attribution bias. We first predict that managers who overestimate growth of future sales due to a bias related to miscalibration and the better-than-average effect are more patient with retaining unused capacity when sales decrease than do rational managers. This patience results in greater stickiness of committed costs. For the next stage, we expect that the optimistic managers who experience greater prior performance are more likely to retain unused slack when subsequent future sales decrease, as opposed to the managers who experience lower performance. This may be because successful managers assess the probability of realizing their optimistic expectations of growth more greatly owing to learning and the self-attribution bias. The results show that the cost stickiness in firms with optimistic managers exceeds that of firms with rational managers. Further, the degree of the cost stickiness in firms with optimistic managers grows even stronger with prior better performance. These are also consistent with alternative robust tests. We contribute to several streams of the literature. First, we complement the literature on sticky costs as an explanation for managerial expectation by examining―from an angle other than rational expectation―the effect of managerial optimistic bias that surpasses that of general managers on inelastic cost structure or over-slack resources. Finally, we contribute to the growing body of the behavioral accounting literature by adopting the difference between management`- and analyst`s forecast as a managerial optimistic bias, thus remedying the time interval problem of Lin et al. (2005)`s measure.

The Effects of Managerial Attributes on Cost Stickiness: An Empirical Analysis of Korean Exporters and Implications for Start-ups

Sang-Hyun Ji,Il Sook Kwon,Sang Bong An 한국무역학회 2021 Journal of Korea trade Vol.25 No.2

Purpose – We attempted to empirically verify the effects of managerial attributes on cost stickiness in exporters. Exporters are often affected not only by external factors such as exchange rate but also by internal factors such as managerial attributes regarding their business activities. Because cost stickiness is the product of a manager’s decision-making, it has been considered that managerial attributes have a great influence on the behavior. Therefore, our study was intended to find out whether cost stickiness shows differentiated aspects depending on managerial attributes in exporters. Design/methodology – We considered two managerial attributes: CEO power and managerial overconfidence. First, CEO power was measured as CEO pay slice. In addition, managerial overconfidence was measured based on three methodologies presented by previous studies. To measure cost stickiness, we used multiple methodologies presented by prior research. Findings – The results of our empirical analysis are as follows. First, in export firms, the greater CEO power is, the greater cost stickiness is. This result suggested that export managers with great influence little respond to temporary sales decrease promptly, little reduce related production costs flexibly in preparation for future sales recovery, but leave room to endure costs for idle resources. Second, the greater managerial overconfidence is, the greater cost stickiness is. This result indicated that export managers with great overconfidence on their decision-making often view the prospect for sales recovery positively; therefore, they little respond to temporary sales decrease immediately, little reduce related production costs flexibly for future sales recovery, but leave room to endure costs for idle resources. Third, export managers with great influence in their businesses and great overconfidence in their decision-making tend to show relatively great cost stickiness. The results proposed that the combination of the two factors functions to make cost stickiness greater. Originality/value – Our study is differentiated from extant studies in that we provided empirical evidence of the effects of managerial attributes on their business activities in exporters. Specifically, we verified the effects of managerial attributes on cost stickiness in Korean exporters. The results of our study are expected to contribute to providing useful information for exporters and start-ups.

기업지배구조의 수준과 개선정도가 원가의 하방경직성에 미치는 영향

박애영(Park. Ae young),곽지영(Kwak, Ji Young) 한국국제회계학회 2014 국제회계연구 Vol.0 No.58

원가의 하방경직성(cost stickiness)은 경영자의 사적이익추구로 인한 대리인 문제에서 기인할 수 있다(Anderson et al. 2003; Chen et al. 2012). 기회주의적인 경영자의 의사결정의 결과로 원가의 하방경직성이 나타나는 것이라면, 이에 대한 적절한 감시와 통제 수단이 필요하다. 본 연구는 원가의 하방경직성에 집중하여, 통합메커니즘인 기업지배구조의 역할을 총체적이고 실증적으로 분석하는 것을 목적으로 한다. 기업지배구조는 소유구조, 이사회, 감사기구 등의 다양한 요소가 함께 경영자의 행동에 영향을 미쳐 대리인 문제를 통제하는 역할을 하므로, 본 연구는 한국기업지배구조원의 기업지배구조 평가점수를 활용하여 2007년부터 2012년까지 유가증권 시장에 계속 상장되어 있고 결산월이 12월인 제조기업을 대상으로 원가의 하방경직성에 대한 기업지배구조의 영향을 실증 분석한다. 분석결과, 전반적인 기업지배구조의 수준이 우수할수록 원가의 하방경직성이 완화되며, 전반적으로 기업지배구조가 개선됨에 따라서 원가의 하방경직성이 더욱 완화되는 것을 확인할 수 있었다. 그리고 원가의 하방경직성을 통제하는데 있어 세부 부문의 기업지배구조 특성은 일관된 유의적인 영향을 보이지 않았으며, 세부 부문의 개선노력 중 이사회 부문 및 공시 부문의 변화가 일관되게 유의미한 영향을 미치는 지배구조 특성으로서 확인되었다. 주주의 권리보호의 변화는 모형에 따라 원가행태에 대한 영향이 일관되지 않은 결과를 보였다. 원가의 하방경직성에 대한 기업지배구조의 영향이 일관되게 나타나지 않는 상황에서, 본 연구의 결과는 기업지배구조의 하나의 단면을 분석한 기존 연구를 확장하는 의미를 지니며, 기업지배구조의 총체적이고 세부적인 수준 이외에도 그 개선정도에 따른 경영자의 행태에 대한 영향을 분석하였다는 점에서 기존연구와 차별점이 있다. 본 연구의 실증적 증거는 원가의 하방경직성을 효과적으로 통제하기 위해서는 부문별 지배구조 보다는 기업지배구조 전반에 대한 개선의 노력이 필요하다는 것을 추가적으로 시사하는 결과로 볼 수 있다. Cost stickiness can cause from agency problem(Anderson et al. 2003; Chen et al. 2012). The objective of this study is to investigate empirically the good and improved corporate governance is effective to mitigate the degree of cost stickiness. Unlike the prior research, the comprehensive level of corporate governance was measured by firm’s corporate governance score of KCGS in our study. The results of this paper are as follows. First, this study finds that the degree of firm’s cost stickiness tends to be lower when a firm has a higher corporate governance scores in total. The costs of all categories(cost of goods sold, selling and administrative costs, selling costs, wages expenses) are less sticky for firms which have higher corporate governance score in total. It suggests that good corporate governance is effective controlling mechanism to reduce managers’ opportunistic behavior. Second, We find that the costs of all categories(cost of goods sold, selling and administrative costs, selling costs, wages expenses) are less sticky for firms which have higher improved corporate governance score. It implies that improved corporate governance is effective for mitigating agency problem. On the other hand, we cannot find any significant differences in the degree of cost stickiness in separate corporate governance (same as protections of right of shares, board of directors, disclosures, auditing mechanism, allocation of firm performance). It suggests that individual elements of corporate governance is ineffective for mitigating cost stickiness but their integrated effects are effectively. Finally, we find that the improvement for board of directors, improved disclosures can significantly impact on cost stickiness. These findings provide implication for future study and disclosure policy of corporate governance in Korea. We tried to measured the integrated level and the degree of improvement of corporate governance score, it differs from prior studies. The results of our study reinforce empirical evidence related to the effectiveness of corporate governance. Our findings are more direct and strong empirical evidence that corporate governance can play an important role in controlling managers’ cost asymmetric behavior.

Industry policy and Cost Stickiness: the case of New Energy Vehicles in China

장 치엔치엔,김동일 한국비즈니스학회 2023 비즈니스융복합연구 Vol.8 No.4

NEVs are of strategic importance to a country to cope with environmental degradation and reshape its future industrial layouts. We would like to focus on the relationship between the internal mechanisms of firms in the NEVs industry and the macro-fiscal environment. In this study, we want to know whether industry policy affects cost stickiness by influencing managerial decisions in new energy vehicles (NEVs), whether grant and tax incentives differ in influencing managers' expectations and cost stickiness, and whether managers behave short-termism in asymmetric cost response. First, we identify and collect data on 573 NEVs listed firms from China's A-share market. Following the two-period model of Banker, Byzalov, Ciftci and Mashruwala (2014), we add a new condition of a prior sales decrease to observe changes in cost stickiness and interpret industry policy as the signal managers rely on to adjust resource. Finally, we compare the R&D cost and SG&A cost to see whether there is managerial short-run behavior. Based on these methods, we conclude that in NEVs higher grant and tax incentives trigger more optimistic expectations, and are associated with significantly greater cost stickiness even if prior sales fell. Compared to SG&A cost, we find grant makes R&D cost sticky in the current period when faced with a prior sales decrease, while tax incentives make R&D cost anti-sticky, which may be caused by agency problems. This research further demonstrates the relationship between industry policy and cost stickiness, fills the void in analyzing the specific policy for developing NEVs, and identifies the role of managerial decisions in cost response. Our paper examines the impact of industrial policy on cost stickiness from the perspective of managers' expectations. This enriches the existing research on industrial policy and cost stickiness, which previously focused on the effect of industrial policy on adjusting resources. It also focuses on popular industries to find out the characteristics of NEVs that are more optimistic about industrial policy.

An Empirical Study on Moderating Effects of Espoused National Cultural Values on Internet Community Stickiness

Sun-Dong Kwon,Hee-Dong Yang,Hualong Fang,Mi-Hyun Ko 한국데이타베이스학회 2008 Journal of information technology applications & m Vol.15 No.3

Recently, the concept of web site stickiness receives attention as a measure of strategy to influence user’s visit and behavior on web sites. Web site stickiness means site visit frequency and stay duration. This study investigates the moderating effect of espoused national cultural values on Internet community stickiness with the assumption that dimensional values of national culture can be internalized as individual’s espoused values. Espoused values (i.e., espoused national cultural values) are defined as the degree to which an individual embraces the values of his or her national culture. Our findings can be summarized as follows. First, femininity and power distance moderate the influence of user participation on Internet community stickiness. Second, uncertainty avoidance and power distance moderates the effect of social influence on Internet community stickiness. However, femininity and collectivism do not moderate the effect of social influence on Internet community stickiness. Third, uncertainty avoidance, femininity, and collectivism moderate the influence of network effect on Internet community stickiness. Fourth, masculinity does not moderate the influence of usefulness on Internet community stickiness.