The Relationship Between Cost Stickiness and Earnings Management and Firm Characteristics: A Review on Borsa Istanbul

Year 2024, Volume: 32 Issue: 60, 339 - 363, 28.04.2024

Gamze Sevimli Örgün , Mehmet Aygün

https://doi.org/10.17233/sosyoekonomi.2024.02.16

Cited By: 1

Abstract

The main aim of this study is to examine the relationship between cost stickiness, earnings management and firm characteristics. Data from 196 companies operating in Borsa Istanbul for 2012-2020 were used to achieve this aim. The ABJ method was frequently used in the literature to measure cost stickiness, and the Modified Jones Model was used as an earnings management indicator. According to the analysis results using the balanced panel data analysis method, no statistically significant relationship between cost stickiness and earnings management could be obtained. On the other hand, it has been determined that there are significant relationships between cost stickiness and firm characteristics, including firm profitability, debt ratio, firm size and firm age.

Keywords

Cost Stickiness, Earnings Management, Firm Characteristics

Maliyet Yapışkanlığı ile Kâr Yönetimi ve Firma Karakteristikleri Arasındaki İlişki: Borsa İstanbul Üzerine Bir İnceleme

Abstract

Bu çalışmanın temel amacı, maliyet yapışkanlığı ile kar yönetimi ve firma karakteristikleri arasındaki ilişkiyi incelemektir. Bu amacı gerçekleştirmek üzere Borsa İstanbul’da faaliyet gösteren 196 firmanın 2012-2020 yıllarına ait verilerinden yararlanılmıştır. Maliyet yapışkanlığının ölçümünde literatürde sıklıkla kullanılan ABJ yöntemi, kâr yönetimi göstergesi olarak da Modifiye Edilmiş Jones Modelinden yararlanılmıştır. Dengeli panel veri analizi yönteminin kullanıldığı analiz sonuçlarına göre maliyet yapışkanlığı ile kâr yönetimi arasında istatistiksel olarak anlamlı bir ilişki elde edilememiştir. Buna karşın maliyet yapışkanlığı ile firma kârlılığı, firmanın borçlanma oranı, firma büyüklüğü ve firma yaşını içeren firma karakteristikleri arasında anlamlı ilişkilerin varlığı tespit edilmiştir.

Keywords

Maliyet Yapışkanlığı, Kâr Yönetimi, Firma Karakteristikleri

References

• Abdullah, A.A.H. (2021), “Cost Stickiness and Firm Profitability: A Study In Saudi Arabian Industries”, Investment Management and Financial Innovations, 18(3), 327-333.
• Alavinasab, M.S. et al. (2017), “The Effect of Economic Growth on Cost Stickiness in Tehran Stock Exchange”, International Journal of Finance and Accounting, 6(3), 87-94.
• Anderson, M. et al. (2003), “Are Selling, General and Administrative Costs ‘Sticky’ ?”, Journal of Accounting Research, 41(1), 47-63.
• Balios, D. et al. (2020), “Sticky Behaviour of Selling, General and Administrative Costs and Earnings Management Practices: An International Comparative Perspective”, International Journal Managerial and Financial Accounting, 12(3-4), 242-264.
• Baltagi, B.H. (2013), Econometric Analysis of Panel Data, 5th Edition, Wiley.
• Banker, R.D. & D. Byzalov (2014), “Asymmetric Cost Behavior”, Journal of Management Accounting Research, 26(2), 43-79.
• Bengü, H. & C. Fidancan (2020), “BİST Kimya ve Metal Ana Sanayi Sektörlerindeki İmalat İşletmelerinde Maliyet Yapışkanlığının Test Edilmesine İlişkin Bir Uygulama”, Niğde Ömer Halisdemir Üniversitesi İİBF Dergisi, 13(2), 331-342.
• Bengü, H. & C. Fidancan (2022), “İmalat İşletmelerinde Maliyet Yapışkanlığının Karşılaştırılması: Türkiye, Endonezya ve Meksika Örneği”, Niğde Ömer Halis Demir Üniversitesi İİBF Dergisi, 15(2), 386-398.
• Boakye, B.Y. et al. (2019), “The Relationship Between Real Earnings Management and Cost Behavior”, SEISENSE Journal of Management, 2(6), 65-77.
• Breusch, T. & A. Pagan (1980), “The Lagrange Multiplier Test and Its Applications to Model Specification in Econometrics”, Review of Economic Studies, 47(1), 239-253.
• Calleja, K. et al. (2006), “A Note On Cost Stickiness: Some International Comparisons”, Management Accounting Research, 17(1), 127-140.
• Cheung, J. et al. (2016), “Is The Asymmetric Cost Behavior Affected By Competition Factors?”, Asia-Pacific Journal of Accounting & Economics, 25(6), 1-17.
• Çelik, M. & D. Kök (2013), “Türkiye’de Maliyet Yapışkanlığının Geçerliliği: İstanbul Menkul Kıymetler Borsası (IMKB) Örneğinde Panel Veri Analizi”, Business and Economics Research Journal, 4(4), 37-48.
• de Medeiros, O.R. & De Souza Costa, P. (2004), Cost Stickiness in Brazilian Firms, Available at SSRN, <https://papers.ssrn.com/sol3/papers.cfm?abstract_id=632365>, 26.02.2021.
• Dechow, P.M. et al. (1995), “Detecting Earnings Management”, The Accounting Review, 70(2), 193-225.
• Erdoğan, M. vd. (2019), “BIST’de Sektörler İtibariyle Maliyet Yapışkanlığının Panel Veri Analiziyle İncelenmesi”, Süleyman Demirel Üniversitesi Vizyoner Dergisi, 10(24), 264-274.
• Ghazalat, A. & J. Abu-Serdaneh (2020), “Sticky Cost Behavior and Conditional Conservatism: An Empirical Analysis From GCC Countries”, International Journal of Management, 11(12), 2717-2729.
• Günay, F. & L. Koşan (2020), “Maliyet Yapışkanlığının Pay Getirisine Etkisi: Turizm Alt Sektörlerinde Bir Uygulama”, Journal of Accounting and Taxation Studies, 13(3), 667-707.
• Gürdal, K. (2019), Maliyet Muhasebesi, Ankara: Siyasal Kitabevi.
• Habib, A. & M.M. Hasan (2019), “Corporate Social Responsibility and Cost Stickiness”, Business & Society, 58(3), 453-492.
• Hacıhasanoğlu, T. & E. Dalkılıç (2018), “Maliyet Yapışkanlığı Hipotezinin BİST İmalat Sektörü Kapsamında Test Edilmesi”, Hitit Üniversitesi SBE Dergisi, 11(3), 1802-1808.
• Hashemi, S.A. & A. Nejati (2015), “The Effect of Earnings Management on Costs Stickiness”, Journal of Iranian Accounting Review, 2(8), 93-108.
• He, J. et al. (2020), “Asymmetric Cost Behavior and Dividend Policy”, Journal of Accounting Research, 58(4), 989-1021.
• Hemati, M. & D. Javid (2017), “The Effects of The Earnings Management and Corporate Governance on Expense Stickiness”, International Journal of Accounting Research, 5(2), 1-6.
• Jin, Y. (2017), “Does Earnings Management Affect The Cost Stickiness of Corporate?”, 7th International Conference on Education, Management, Computer and Society (EMCS 2017), <https://dx.doi.org/10.2991/emcs-17.2017.120>, 08.12.2021.
• Karadeniz, E. et al. (2019), “Halka Açık Konaklama İşletmelerinde Maliyet Yapışkanlığının Analizi”, Journal of Tourism Theory and Research, 5(2), 171-181.
• Kontesa, M. & R.K. Brahmana (2018), “Cost Stickiness Effect on Firm’s Performance: Insights From Malaysia”, Asia-Pacific Management Accounting Journal, 13(1), 1-19.
• Koo, J.H. et al. (2015), “Earnings Management and Cost Stickiness”, Advanced Science and Technology Letters, 84(1), 40-44.
• Megeid, N.S.A. & M.S. El-Deeb (2021), “Board Characteristics Effect on Cost Stickiness Using Earnings Management as a Mediating Variable ‘Evidence from Egypt’”, Alexandria Journal of Accounting Research, 5(2), 1-48.
• Özkaya, H. (2020), “Sticky Cost Behavior: Evidence From Small and Medium Sized Enterprises in Turkey”, Euraisan Business Review, 11, 349-369.
• Öztürkçü-Akçaya, A. & H.C. Sayın (2022), “Yatırım Harcamaları ve Finansal Esneklik İlişkisi: Borsa İstanbul Üzerine Bir İnceleme”, İşletme Araştırmaları Dergisi, 14(1), 846-864.
• Periasamy P. (2010), A Textbook of Financial Cost and Management Accounting, Nagpur: Himalaya Publishing House.
• Salehi, M. et al. (2018), “The relationship between cost stickiness and financial reporting quality in Tehran Stock Exchange”, International Journal of Productivity and Performance Management, 67(9), 1550-1565.
• Sayrani, M. et al. (2018), “Evaluation The Relationship Between Cost Stickiness and Corporate Governance”, Journal of Management and Accounting Studies, 6(1), 27-32.
• Tatoğlu, F.Y. (2013), Panel Veri Ekonometrisi: Stata Uygulamalı, İstanbul: Beta Yayıncılık.
• Tatoğlu, F.Y. (2020), Panel Veri Ekonometrisi: Stata Uygulamalı, İstanbul: Beta Yayıncılık.
• Venieris, G. et al. (2015), “Organisation Capital and Sticky Behaviour of Selling, General and Administrative Expenses”, Management Accounting Research, 26(1), 54-82.
• Warganegara, D.L. & D. Tamara (2014), “The Impact of Cost Stickiness on the Profitability of Indonesian Firms”, International Journal of Social, Behavioral, Educational, Economic, Business and Industrial Engineering, 8(11), 3542-3545.
• Weiss, D. (2010), “Cost Behavior and Analysts’ Earnings Forecasts”, The Accounting Review, 85(4), 1441-1471.
• Wijayanti, I. et al. (2020), “The Effect of Corporate Social Responsibility Disclosure, Leverage, Firm Size, and Profitability Toward Earnings Response Coefficient”, Int. J. Innov. Creat. Chang, 13, 1202-1216.
• Wijayanti, I. et al. (2022), “Sticky Cost Behavior in Agricultural Sector Companies in Indonesia”, Journal of Economics, Finance and Management Studies, 5(1), 127-133.
• Xue, S. & Y. Hong (2016), “Earnings Management, Corporate Governance and Expense Stickiness”, China Journal of Accounting Research, 9(1), 41-58.
• Yükçü, S. & H. Özkaya (2011), “Cost Behavior in Turkish Firms: Are Selling, General and Administrative Costs and Total Operating Costs ‘Sticky’ ?”, World of Accounting Science, 13(3), 1-27.
• Yükçü, S. (2018), Yönetim Açısından Maliyet Muhasebesi, İzmir: Altın Nokta Yayınevi.
• Zanjirdar, M. et al. (2014), “Comparative Analysis of Sticky SGA Costs and Cost of Goods Sold: Evidence From Tehran Stock Exchange”, Management Science Letters, 4(3), 521-526.
• Zhang, Y. (2016), “The Stickiness of SG&A Costs, Agency Problems and Competition Intensity”, Masters’ Thesis, Erasmus University Rotterdam, Erasmus School of Economics.
• Zhao, B.J. (2020), Supply Chain Bargaining Power and Cost Stickiness, Available at SSRN, <https://dx.doi.org/10.2139/ssrn.3685994>, 01.03.2021.
• Zhong, T. et al. (2020), “Business Strategy, State-Owned Equity and Cost Stickiness: Evidence from Chinese Firms”, Sustainability, 12(5), 1850.
• Zulfiati, L. et al. (2020), “Cost Stickiness: Behavior and Factors”, Advances in Economics, Business and Management Research, 127(1), 143-145.