TITLE:
The Impact of Cost Stickiness on Saudi Firm’s Profitability
AUTHORS:
Tazarki Walid
KEYWORDS:
Cost Stickiness, Earnings per Share (EPS), Saudi Companies
JOURNAL NAME:
Modern Economy,
Vol.14 No.12,
December
27,
2023
ABSTRACT: This paper examines the impact of cost stickiness on firm performance for
a sample composed of 110 listed companies in Saudi Arabia from 2017 to 2022.
Data are estimated by the OLS regression analysis, and the Earnings per Share (EPS) ratio is used as a proxy to estimate firms’
performance. The results show a negative correlation between cost
stickiness and performance. Furthermore, the
results indicate that for industrial firms, age and size are positively correlated with performance. On the other
hand, for commercial and service companies, a high level of debt is
related to low performance.