Quotation Klein, Aleksandra, Lindner, Thomas, Wabnegg, Markus. 2019. Decomposing Cost Asymmetry: The Role of Global Risk Preferences. AAA Annual Meeting, San Francisco, Vereinigte Staaten/USA, 09.08.-14.08.




A growing body of research documents an asymmetric behavior of costs, implying that costs rise more in response to revenue increases than they drop for revenue decreases. This cost behavior is ascribed to managerial decisions on resource commitment. In this study, we further explore this asymmetry by decomposing it into resource adjustments following sales increases and sales decreases and develop hypotheses on how these may be affected by varying risk preferences across countries. To test our hypotheses, we use panel data on 3,558 companies across nine industry sectors from 26 countries around the world over the period of six years (2008-2013). We contribute to existing literature on asymmetric cost behavior in considering the role of risk preferences in different domains as well as the role of industry performance as a reference point for managerial decision-making on resource commitment.


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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Paper presented at an academic conference or symposium
Language English
Title Decomposing Cost Asymmetry: The Role of Global Risk Preferences
Event AAA Annual Meeting
Year 2019
Date 09.08.-14.08.
Country United States/USA
Location San Francisco
URL https://www2.aaahq.org/AM/abstract.cfm?submissionID=1991


Klein, Aleksandra (Details)
Lindner, Thomas (Details)
Wabnegg, Markus (Details)
Institute for Strategy and Managerial Accounting IN (Details)
Institute for Strategy and Managerial Accounting (Grabner) (Details)
Research areas (Ă–STAT Classification 'Statistik Austria')
5308 Management sciences (Details)
5327 Accounting (Details)
5359 Controlling (Details)
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