The influence of the trade-off between profitability and future increases in sales on cost stickiness

Abstract: This study analyses cost stickiness under the dilemma between current profitability and future sales increase. When activity decreases firms are faced to keep profitability adjusting resources, while they should also consider long term consequences and keep slack resources which allow buil...

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Autores principales:	Argilés-Bosch,Josep Mª, García-Blandón,Josep, Ravenda,Diego, Valencia-Silva,Maika M., Somoza,Antonio D.
Lenguaje:	English
Publicado:	Universidad de Chile. Departamento de Economía 2017
Materias:	Cost stickiness profitability increases in sales slack resource adjustment.
Acceso en línea:	http://www.scielo.cl/scielo.php?script=sci_arttext&pid=S0718-52862017000100081
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spelling	oai:scielo:S0718-528620170001000812017-07-21The influence of the trade-off between profitability and future increases in sales on cost stickinessArgilés-Bosch,Josep MªGarcía-Blandón,JosepRavenda,DiegoValencia-Silva,Maika M.Somoza,Antonio D. Cost stickiness profitability increases in sales slack resource adjustment. Abstract: This study analyses cost stickiness under the dilemma between current profitability and future sales increase. When activity decreases firms are faced to keep profitability adjusting resources, while they should also consider long term consequences and keep slack resources which allow building firms capacities to adapt to external challenges and take advantage of future opportunities. We find empirical evidence that changes in current firm profitability and one year ahead sales increase significantly influence resource adjustment in periods when sales decrease. We find a significant moderating effect of changes in profitability, as well as a significant stressing effect of one year ahead sales increase, on cost stickiness.info:eu-repo/semantics/openAccessUniversidad de Chile. Departamento de EconomíaEstudios de economía v.44 n.1 20172017-06-01text/htmlhttp://www.scielo.cl/scielo.php?script=sci_arttext&pid=S0718-52862017000100081en10.4067/S0718-52862017000100081
institution	Scielo Chile
collection	Scielo Chile
language	English
topic	Cost stickiness profitability increases in sales slack resource adjustment.
spellingShingle	Cost stickiness profitability increases in sales slack resource adjustment. Argilés-Bosch,Josep Mª García-Blandón,Josep Ravenda,Diego Valencia-Silva,Maika M. Somoza,Antonio D. The influence of the trade-off between profitability and future increases in sales on cost stickiness
description	Abstract: This study analyses cost stickiness under the dilemma between current profitability and future sales increase. When activity decreases firms are faced to keep profitability adjusting resources, while they should also consider long term consequences and keep slack resources which allow building firms capacities to adapt to external challenges and take advantage of future opportunities. We find empirical evidence that changes in current firm profitability and one year ahead sales increase significantly influence resource adjustment in periods when sales decrease. We find a significant moderating effect of changes in profitability, as well as a significant stressing effect of one year ahead sales increase, on cost stickiness.
author	Argilés-Bosch,Josep Mª García-Blandón,Josep Ravenda,Diego Valencia-Silva,Maika M. Somoza,Antonio D.
author_facet	Argilés-Bosch,Josep Mª García-Blandón,Josep Ravenda,Diego Valencia-Silva,Maika M. Somoza,Antonio D.
author_sort	Argilés-Bosch,Josep Mª
title	The influence of the trade-off between profitability and future increases in sales on cost stickiness
title_short	The influence of the trade-off between profitability and future increases in sales on cost stickiness
title_full	The influence of the trade-off between profitability and future increases in sales on cost stickiness
title_fullStr	The influence of the trade-off between profitability and future increases in sales on cost stickiness
title_full_unstemmed	The influence of the trade-off between profitability and future increases in sales on cost stickiness
title_sort	influence of the trade-off between profitability and future increases in sales on cost stickiness
publisher	Universidad de Chile. Departamento de Economía
publishDate	2017
url	http://www.scielo.cl/scielo.php?script=sci_arttext&pid=S0718-52862017000100081
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The influence of the trade-off between profitability and future increases in sales on cost stickiness

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