Management control & accounting
CEO overconfidence and cost stickiness
Kuang, Y.F. | Qin, B. | Warsha Mohan, A.
MCA, 2015
Cost stickiness occurs when costs decrease less when sales fall than they increase when sales rise. Prior literature provides both economic and agency explanations of sticky costs. The authors found that cost stickiness is greater when firms are managed by overconfident CEOs.
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