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The Non－Linear Relationship between Asymmetric Cost Behavior and Firm Performance

김경민|김진배
한국국제회계학회 (Korea International Accounting Association)|2024.10|국제회계연구 (Korea International Accounting Review)|제117호|pp. 169-206

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키워드

Firm performance기업성과비선형적 관계Asymmetric cost behaviorNon－linear relationship비대칭적 원가 행태

초록

[Purpose] This paper aims to explore the non－linear relationship between asymmetric cost behavior and firm performance, challenging the traditional linear models. It suggests that while asymmetric cost behavior initially decreases firm performance, its negative impact diminishes over time, eventually leading to positive effects. The study also examines how firm diversification and discretionary accruals influence this non－linear relationship. [Methodology] The research introduces a squared term of asymmetric cost behavior to capture non－linear effects on firm performance using Weiss (2010) model. This paper employs regression analysis to test the impact of moderators like firm diversification and discretionary accruals. For robustness tests, we adopt entropy balancing methodology and Heckman two stage model. [Findings] Based on U.S. financial data, this paper finds that the linear term of asymmetric cost behavior negatively affects firm performance, while the squared term has positive effects, indicating a non－linear relationship. Higher asymmetric cost behavior helps maintain operational continuity and lead to a more efficient resource management, improving firm performance. The non －linear relationship is more pronounced in highly diversified firms and those with higher discretionary accruals. [Implications] The findings contribute to the literature by highlighting the strategic importance of asymmetric cost behavior for firm performances. This paper suggests that firms can use asymmetric cost behavior to sustain operational capabilities and improve efficient resource management, ultimately enhancing firm performance.

Abstract

[Purpose] This paper aims to explore the non－linear relationship between asymmetric cost behavior and firm performance, challenging the traditional linear models. It suggests that while asymmetric cost behavior initially decreases firm performance, its negative impact diminishes over time, eventually leading to positive effects. The study also examines how firm diversification and discretionary accruals influence this non－linear relationship. [Methodology] The research introduces a squared term of asymmetric cost behavior to capture non－linear effects on firm performance using Weiss (2010) model. This paper employs regression analysis to test the impact of moderators like firm diversification and discretionary accruals. For robustness tests, we adopt entropy balancing methodology and Heckman two stage model. [Findings] Based on U.S. financial data, this paper finds that the linear term of asymmetric cost behavior negatively affects firm performance, while the squared term has positive effects, indicating a non－linear relationship. Higher asymmetric cost behavior helps maintain operational continuity and lead to a more efficient resource management, improving firm performance. The non －linear relationship is more pronounced in highly diversified firms and those with higher discretionary accruals. [Implications] The findings contribute to the literature by highlighting the strategic importance of asymmetric cost behavior for firm performances. This paper suggests that firms can use asymmetric cost behavior to sustain operational capabilities and improve efficient resource management, ultimately enhancing firm performance.

참고문헌 (42)

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