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Dierynck, B., Landsman, W.R. and Renders, A. (2012) Do Managerial Incentives drive Cost Behavior? Evidence about the Role of the Zero Earnings Benchmark for Labor Cost Behavior in Belgian Private Firms. The Accounting Review, 87, 1219-1246.
https://doi.org/10.2308/accr-50153

has been cited by the following article:

• TITLE: Earnings Management Motivation and Cost Stickiness—Research Based on Private Equity Placement

  AUTHORS: Yihuan Li

  KEYWORDS: Private Equity Placement, Earnings Management Motivation, Cost Stickiness, State-Owned Enterprises, Big Four International Audit Firms

  JOURNAL NAME: American Journal of Industrial and Business Management, Vol.8 No.3, March 21, 2018

  ABSTRACT: Cost Stickiness means that costs increase more rapidly with an activity increase than they decrease with an activity decrease. This paper focuses on Chinese A-shares listed companies, which implement private equity placement from 2007 to 2016, to study the impact of earnings management motivation of private equity placement on listed companies’ cost stickiness. The results show that the listed companies implementing private equity placement have positive motivation of earnings management, and will cut more costs when the operating income declines, thus weakening their cost stickiness. Further tests find that this weakened effect is more obvious in the state-owned enterprises, and less obvious in the enterprises audited by the big-four.