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Journal of Business Economics and Management
Article . 2020 . Peer-reviewed
Data sources: Crossref
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EconStor
Article . 2021
License: CC BY
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THE INFLUENCE OF CORPORATE FINANCIALIZATION ON ASYMMETRIC COST BEHAVIOR: WEAKENING OR WORSENING

Authors: Zhu, Guanping; Hu, Wenxiu; Peng, Tao; Xue, Chaokai;

THE INFLUENCE OF CORPORATE FINANCIALIZATION ON ASYMMETRIC COST BEHAVIOR: WEAKENING OR WORSENING

Abstract

This paper investigates the relationship between corporate financialization and asymmetric cost behavior using the Chinese listed companies over the period of 2009–2017. To examine the heterogeneous impacts of corporate financialization on asymmetric cost behavior, the paper analyzes the subsamples classified by different internal controls, compensation incentives, and agency problems. The multiple linear regression is used to test the research hypothesis. The research finds a negative relationship between corporate financialization and asymmetric cost behavior, which indicates that corporate financialization significantly weakens asymmetric cost behavior. Further studies show that the negative effect of corporate financialization on asymmetric cost behavior is mainly manifested in firms with good internal control quality, strong compensation incentive and low agency problem. On the contrary, the negative effect is insignificant in firms with poor internal control quality, weak compensation incentive and high agency problem. The results can not only enrich the existing literature, but also provide new evidence and inspiration for how to control asymmetric cost behavior of enterprises.

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Keywords

multiple linear regression, HF5001-6182, ddc:650, M41, corporate financialization, M21, heterogeneous impacts, Articles, internal control, agency problem, asymmetric cost behavior, compensation incentive, D23, G32, Business, D22

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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
25
Top 10%
Top 10%
Top 10%
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