The Effect of Earnings-Target Incentive Compensation on Cost Stickiness Behaviour: Evidence from Indonesian Listed Manufacturing Companies.
The phenomenon in contrast to the traditional cost accounting theory, assuming cost efficiency as the primary objective, is called cost stickiness behaviour. Under the cost stickiness phenomenon, the increase of cost during a revenue-increasing trend is more significant than the decrease in cost dur...
| Publicado en: | Pertanika Journal of Social Sciences & Humanities Vol. 27; no. S2; pp. 167 - 181 |
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| Autores principales: | , |
| Formato: | Artículo |
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Universiti Putra Malaysia
2019 Special Issue
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| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=hlh&AN=159680394&site=ehost-live header: @attributes: shortDbName: hlh uiTerm: 159680394 longDbName: Humanities International Complete uiTag: AN controlInfo: bkinfo: jinfo: jid: 01287702 TKQ jtl: Pertanika Journal of Social Sciences & Humanities issn: 01287702 maglogo: N pubinfo: dt: 2019 Special Issue vid: 27 iid: S2 pid: 20751 pub: Universiti Putra Malaysia artinfo: ui: 159680394 ppf: 167 ppct: 14 formats: fmt: @attributes: type: P size: 2.8MB tig: atl: The Effect of Earnings-Target Incentive Compensation on Cost Stickiness Behaviour: Evidence from Indonesian Listed Manufacturing Companies. aug: au: Zagita, Tami Rossieta, Hilda affil: Department of Accounting, Faculty of Economics and Business, Universitas Indonesia, Depok, 16424, West Java, Indonesia su: Cost Manufacturing industries Cost effectiveness Corporate profits Labor incentives Wages Indonesia sug: subj: Indonesia Cost Manufacturing industries Cost effectiveness Corporate profits Labor incentives Wages keyword: cost efficient behaviour Cost stickiness behaviour earnings-target incentive compensation system empire building motive ab: The phenomenon in contrast to the traditional cost accounting theory, assuming cost efficiency as the primary objective, is called cost stickiness behaviour. Under the cost stickiness phenomenon, the increase of cost during a revenue-increasing trend is more significant than the decrease in cost during a revenue-decreasing trend (Anderson et al., 2003). This study investigates whether listed manufacturing companies in Indonesia practice cost stickiness behaviour. This study also examines specific circumstances stopping managers from adopting such behaviour and exercising a cost-efficient policy instead. This study hypothesises that generally, managers' practice cost stickiness behaviour to enjoy a double benefit. However, when a level of earning is critical near to losses, managers choose to practice traditional efficient-cost behaviour and cease building a business empire through a cost stickiness policy. Using a sample of 123 manufacturing companies listed in the Indonesian Stock Exchange from 2009 to 2015, empirical models representing the hypotheses were formulated and tested using a linear regression statistic technique. The test delivers empirical evidence consistent with the hypotheses provided. The empirical results also agree with findings regarding the effect of agency-driven incentives, including earnings-target incentive compensation on cost stickiness behaviour. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: Y custom: Copyright of Pertanika Journal of Social Sciences & Humanities is the property of Universiti Putra Malaysia and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. item: Pertanika Journal of Social Sciences & Humanities holder: Universiti Putra Malaysia dt: @attributes: year: 2019 holdings: @attributes: islocal: N |
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