An assumption made in traditional cost accounting books is that variable costs move proportionately with revenues. Recent studies on sticky costs challenged this assumption. This study shows that sticky costs were observed in banks of Argentina, Brazil and Canada in 2004-2009. Total costs are...

This study provides a test and analyses the existence and magnitude of sticky costs in an emerging economy's financial sector. The results use data from Argentinean banks between 2005 and 2010 (total costs increase 0.55% for every 1% total income increase and decrease only 0.13% per 1% total...