Asymmetric Costs in Argentinian Businesses: Model Analysis
The first three sections of this research are based on the work of Banker and Bysalov (2014). Even though the chronological order of the topics was maintained, the internal structure of each section was changed and some explanations were added in order to enhance the readers’ understanding. The refe...
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| Formato: | Artículo revista |
| Lenguaje: | Español |
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Ediciones UNL
2020
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| Acceso en línea: | https://bibliotecavirtual.unl.edu.ar/publicaciones/index.php/CE/article/view/9274 |
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| Sumario: | The first three sections of this research are based on the work of Banker and Bysalov (2014). Even though the chronological order of the topics was maintained, the internal structure of each section was changed and some explanations were added in order to enhance the readers’ understanding. The references herein cited correspond to the original work. Since the profits of a business are determined by costs, it is necessary to analyze their variations at different activity levels. Moreover, costs determine the investment and competitiveness of a country. If the reasons for their behavior are clear, businesses will be able to make wellfounded decisions. The asymmetric behavior of costs means that these will not always behave identically when adjustments are applied in a sales increase or decrease. Banker, Byzalov and Mashruwala (2014) state that managers keep idle resources in spite of decreasing sales during previous periods. The authors argue that downward rigid costs or sticky downward, –one of the possible asymmetric behaviors– are the result of the existence of more than enough resources or a sufficient productive capacity, and that adjusting those idle resources with a downward trend implies a present or future cost. Banker, Byzalov and Chen (2013) argue that the magnitude of the adjustment costs of resources is one of the major determinants of asymmetric costs. This research work studies whether costs in the Argentinian businesses listed in the stock market show an asymmetric behavior over the period 2002-2012. To this end, different models with different implicit hypotheses are compared. |
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