This paper examines cost behaviour in the municipal setting and finds evidence of cost stickiness. Furthermore, as … municipals in New Zealand are required to produce forecasts, it allows us to investigate whether asymmetric cost behaviour is …-sticky as they increase even when revenues decrease. Cost stickiness remains after controlling for cost structure. Forecast cost …

This study explores whether the intensity of cost asymmetry matters for bankruptcy prediction. An increased level of … cost asymmetry implies increased requirements to finance a high level of adjustment costs due to high investments in prior … period resource levels, decreased operating efficiency and negative market reactions. In addition, a high level of cost …