Cost stickiness, absorbed slack and enterprise risks: Evidence from China.
This study delves into the complex domain of enterprise finance to explore the relationship between cost stickiness and enterprise risks, with a particular emphasis on the role of absorbed slack. Our analysis is based on a comprehensive examination of 3,177 Chinese listed enterprises over a period o...
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| Format: | Article |
| Language: | English |
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Public Library of Science (PLoS)
2024-01-01
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| Series: | PLoS ONE |
| Online Access: | https://doi.org/10.1371/journal.pone.0315675 |
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| _version_ | 1841555451520483328 |
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| author | Qian Binhua Yang Boyuan |
| author_facet | Qian Binhua Yang Boyuan |
| author_sort | Qian Binhua |
| collection | DOAJ |
| description | This study delves into the complex domain of enterprise finance to explore the relationship between cost stickiness and enterprise risks, with a particular emphasis on the role of absorbed slack. Our analysis is based on a comprehensive examination of 3,177 Chinese listed enterprises over a period of ten years, from 2007 to 2022. The findings reveal that cost stickiness is a widespread phenomenon among Chinese listed enterprises, exhibiting variation across different industries. Notably, a strong positive correlation is identified between cost stickiness and enterprise risks, a correlation that remains consistent through various robustness tests, including indicator permutation, sample reconfiguration, and the resolution of endogeneity issues. The research further highlights the mediating effect of absorbed slack in the relationship between cost stickiness and enterprise risks. This study not only confirms the ubiquity of cost stickiness and its association with enterprise risks but also underscores the significant impact of absorbed slack. We offer a novel perspective on the interaction among cost stickiness, absorbed slack, and enterprise risks, providing valuable insights for enterprises aiming to enhance their risk management strategies. The conclusions and recommendations presented serve as a guide for those engaged in the challenging task of managing enterprise risks. |
| format | Article |
| id | doaj-art-4434c27c5f5e4e5cb80b2114adb0595f |
| institution | Kabale University |
| issn | 1932-6203 |
| language | English |
| publishDate | 2024-01-01 |
| publisher | Public Library of Science (PLoS) |
| record_format | Article |
| series | PLoS ONE |
| spelling | doaj-art-4434c27c5f5e4e5cb80b2114adb0595f2025-01-08T05:32:46ZengPublic Library of Science (PLoS)PLoS ONE1932-62032024-01-011912e031567510.1371/journal.pone.0315675Cost stickiness, absorbed slack and enterprise risks: Evidence from China.Qian BinhuaYang BoyuanThis study delves into the complex domain of enterprise finance to explore the relationship between cost stickiness and enterprise risks, with a particular emphasis on the role of absorbed slack. Our analysis is based on a comprehensive examination of 3,177 Chinese listed enterprises over a period of ten years, from 2007 to 2022. The findings reveal that cost stickiness is a widespread phenomenon among Chinese listed enterprises, exhibiting variation across different industries. Notably, a strong positive correlation is identified between cost stickiness and enterprise risks, a correlation that remains consistent through various robustness tests, including indicator permutation, sample reconfiguration, and the resolution of endogeneity issues. The research further highlights the mediating effect of absorbed slack in the relationship between cost stickiness and enterprise risks. This study not only confirms the ubiquity of cost stickiness and its association with enterprise risks but also underscores the significant impact of absorbed slack. We offer a novel perspective on the interaction among cost stickiness, absorbed slack, and enterprise risks, providing valuable insights for enterprises aiming to enhance their risk management strategies. The conclusions and recommendations presented serve as a guide for those engaged in the challenging task of managing enterprise risks.https://doi.org/10.1371/journal.pone.0315675 |
| spellingShingle | Qian Binhua Yang Boyuan Cost stickiness, absorbed slack and enterprise risks: Evidence from China. PLoS ONE |
| title | Cost stickiness, absorbed slack and enterprise risks: Evidence from China. |
| title_full | Cost stickiness, absorbed slack and enterprise risks: Evidence from China. |
| title_fullStr | Cost stickiness, absorbed slack and enterprise risks: Evidence from China. |
| title_full_unstemmed | Cost stickiness, absorbed slack and enterprise risks: Evidence from China. |
| title_short | Cost stickiness, absorbed slack and enterprise risks: Evidence from China. |
| title_sort | cost stickiness absorbed slack and enterprise risks evidence from china |
| url | https://doi.org/10.1371/journal.pone.0315675 |
| work_keys_str_mv | AT qianbinhua coststickinessabsorbedslackandenterpriserisksevidencefromchina AT yangboyuan coststickinessabsorbedslackandenterpriserisksevidencefromchina |