Stickiness of SG&A Costs and The Relationship With Stock Price Volatility-Evidence From Taiwan Public Companies

• Main Authors: Yen,You-Ting, 嚴友廷
• Other Authors: Yang,Ching-Hsi
• Format: Others
• Language: zh-TW
• Published: 2010
• Online Access: http://ndltd.ncl.edu.tw/handle/06328671145175939872

碩士 === 國立臺北大學 === 會計學系 === 98 === The research mainly studied the following issues of public companies in Taiwan. First of all, are selling, general, and administrative (SG&A) costs sticky? That is, whether SG&A costs increase more when sales rise than they decrease when sales fall by an equivalent amount. Second, is the degree of stickiness changed from different industries? Third, in this study we also investigated the relationship between cost stickiness and stock price volatility. The test results are shown above. SG&A costs increase on average 0.5591% per 1% increase in sales but decrease only 0.4733% per 1% decrease in sales, which means stickiness of SG&A costs truly existed in Taiwan public companies. However, this phenomenon does not appear in every industry. We thought it could be probably caused by different industry characteristics. Moreover, we also found the positive relationship between SG&A costs and stock price volatility. In other words, stock price fluctuation of a company which is sticky in SG&A costs is more obvious.