This paper investigates whether cost stickiness occurs in small and medium sized companies using a sample of Italian nonlisted and listed firms during the period 1999-2008. Our findings show that cost stickiness emerges only for the total cost of labour and not for selling, general and administrative (SG&A) costs, cost of goods sold and operating costs. Stickiness of operating costs is only detected in a sample of listed companies. We further contribute to the literature on sticky cost behaviour by discussing critical issues associated with the extant approach of empirical analysis and interpretation of sticky cost behaviour.

Cost asymmetry, Cost behaviour, Cost stickiness, Italian firms, Small and medium sized companies
dx.doi.org/10.1111/acfi.12020, hdl.handle.net/1765/82520
Accounting and Finance
Accounting & Control

Dalla Via, N, & Perego, P.M. (2014). Sticky cost behaviour: Evidence from small and medium sized companies. Accounting and Finance, 54(3), 753–778. doi:10.1111/acfi.12020