Explanatory factors of the cost stickiness phenomenon in public companies in Brazil
DOI:
https://doi.org/10.21680/2176-9036.2026v18n1ID38774Keywords:
assimetria dos custos, cost stickiness, fatores explicativosAbstract
Objective: This study aims to examine the asymmetric behavior of costs in companies listed on B3, to identify their levels, direction, and explanatory factors.
Methodology: The sample comprises 111 non-financial companies based on consolidated financial statements available in the Economatica® database from 2010 to 2022. The study applies the cost stickiness model proposed by Anderson, Banker & Janakiraman (2003) to identify the presence, magnitude, and direction of asymmetric cost behavior in selling, general, and administrative expenses. The model was also adapted to test the influence of variables that may explain the occurrence of cost asymmetry.
Results: The sectoral analysis revealed that cyclical consumer and healthcare companies allocate the highest proportions of revenue to operating costs. Cost stickiness was identified overall and specifically in the industrial goods, cyclical consumer, and non-cyclical consumer sectors. Operating cash flow was not statistically significant, although negatively associated with stickiness in some sectors. Larger firms presented greater levels of cost asymmetry, suggesting more rigid cost structures. During economic downturns, the industrial goods sector was more sensitive, indicating a stronger cost asymmetry in the face of declining economic activity. Additionally, higher proportions of fixed and intangible assets were linked to increased cost stickiness, especially in the non-cyclical consumer sector, likely due to a predominance of fixed cost structures.
Contributions: The findings highlight the importance of considering macroeconomic conditions when making resource allocation decisions. Firms should adopt more cautious strategies based on demand expectations and economic trends. This study contributes to the literature by exploring the determinants of cost stickiness in non-financial firms and suggests that the presence of a high proportion of fixed costs can hinder timely resource adjustments.
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