This study explores the effect of financial distress on the intensity of asymmetric cost behavior. Cost asymmetry refers to the different (i.e., asymmetric) response of variable costs between increases or decreases in the level of a firm’s operating activity due to deliberate managerial...

The current study examines the effect of strategy and managerial ability on asymmetric cost behavior of SG&A expenses. We use a sample of US listed firms for the period 1991-2014 to provide empirical evidence that sticky cost phenomenon is associated with firms' strategic orientation. Our...