Chang, Hsihui; Dai, Xin; Lohwasser, Eric; Qiu, Yue - 2021
This study examines how organized labor affects selling, general, and administrative (SG&A) cost behavior. We find that labor cost stickiness is higher for firms facing stronger unions, but the stickiness of SG&A costs is lower. This is consistent with an argument that managers’ discretionary...