Sticky Costs Behavior and Earnings Management
This study aims to analyze the relationship between cost asymmetry (Sticky Costs) behavior and earnings management practices of Brazilian companies. The methodology refers to descriptive, documentary and quantitative research. The sample comprised 160 Brazilian companies listed on BM&FBovespa...
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| Format: | Article |
| Language: | English |
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FUCAPE Business School
2019-01-01
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| Series: | BBR: Brazilian Business Review |
| Subjects: | |
| Online Access: | http://www.redalyc.org/articulo.oa?id=123058882006 |
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| _version_ | 1825207249585307648 |
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| author | Alini da Silva Vinícius Costa da Silva Zonatto Cristian Baú Dal Magro Roberto Klann |
| author_facet | Alini da Silva Vinícius Costa da Silva Zonatto Cristian Baú Dal Magro Roberto Klann |
| author_sort | Alini da Silva |
| collection | DOAJ |
| description | This study aims to analyze the relationship between cost asymmetry (Sticky Costs) behavior and earnings management practices of Brazilian companies. The methodology refers to descriptive, documentary and quantitative research. The sample comprised 160 Brazilian companies listed on BM&FBovespa between 2008 and 2017. Multiple linear regression models were used to analyze the data. We observed that accounting profit is affected by sticky costs behavior and by earnings management practices. Total accruals and part of earnings management are explained by costs asymmetric behavior. This paper contributes to the current research on the discussion that part of earnings management can be due to sticky costs. In addition, the results show that the Dechow, Sloan and Sweeney (1995) model could consider the asymmetry of costs as an interference variable on total accruals, in order to better estimate the discretionary accruals. |
| format | Article |
| id | doaj-art-374ee65371694485ba1c5f8938bbaf5a |
| institution | Kabale University |
| issn | 1807-734X |
| language | English |
| publishDate | 2019-01-01 |
| publisher | FUCAPE Business School |
| record_format | Article |
| series | BBR: Brazilian Business Review |
| spelling | doaj-art-374ee65371694485ba1c5f8938bbaf5a2025-02-06T23:39:32ZengFUCAPE Business SchoolBBR: Brazilian Business Review1807-734X2019-01-0116219120610.15728/bbr.2019.16.2.6Sticky Costs Behavior and Earnings ManagementAlini da SilvaVinícius Costa da Silva ZonattoCristian Baú Dal MagroRoberto KlannThis study aims to analyze the relationship between cost asymmetry (Sticky Costs) behavior and earnings management practices of Brazilian companies. The methodology refers to descriptive, documentary and quantitative research. The sample comprised 160 Brazilian companies listed on BM&FBovespa between 2008 and 2017. Multiple linear regression models were used to analyze the data. We observed that accounting profit is affected by sticky costs behavior and by earnings management practices. Total accruals and part of earnings management are explained by costs asymmetric behavior. This paper contributes to the current research on the discussion that part of earnings management can be due to sticky costs. In addition, the results show that the Dechow, Sloan and Sweeney (1995) model could consider the asymmetry of costs as an interference variable on total accruals, in order to better estimate the discretionary accruals.http://www.redalyc.org/articulo.oa?id=123058882006sticky costsearnings managementmanagement and financial accounting |
| spellingShingle | Alini da Silva Vinícius Costa da Silva Zonatto Cristian Baú Dal Magro Roberto Klann Sticky Costs Behavior and Earnings Management BBR: Brazilian Business Review sticky costs earnings management management and financial accounting |
| title | Sticky Costs Behavior and Earnings Management |
| title_full | Sticky Costs Behavior and Earnings Management |
| title_fullStr | Sticky Costs Behavior and Earnings Management |
| title_full_unstemmed | Sticky Costs Behavior and Earnings Management |
| title_short | Sticky Costs Behavior and Earnings Management |
| title_sort | sticky costs behavior and earnings management |
| topic | sticky costs earnings management management and financial accounting |
| url | http://www.redalyc.org/articulo.oa?id=123058882006 |
| work_keys_str_mv | AT alinidasilva stickycostsbehaviorandearningsmanagement AT viniciuscostadasilvazonatto stickycostsbehaviorandearningsmanagement AT cristianbaudalmagro stickycostsbehaviorandearningsmanagement AT robertoklann stickycostsbehaviorandearningsmanagement |