Cost stickiness measures the degree of suboptimal cost reduction in response to a decline in a firm's activity. This study examines the role of institutional monitoring in addressing the value-decreasing cost-stickiness problem exhibited in many firms. Using alternative proxies for institutional...

This paper explores the efficiency of bank lending in a business cycle when information asymmetry is present. Assding and the funding decisions of the bank. Then, the papeuming that the existing equity holders of a bank exploit their informational superiority over the potential bond and equity...