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Does Cost Stickiness Affect Earnings Information Quality?——Evidence from Chinese Listed Firms |
JIANG Dequan,XU Wei |
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Abstract The paper investigate the impact of cost stickiness behavior on earnings information quality, and we further argue that the relationship between cost stickiness and earnings information quality depends on different settings. The findings indicate that more sticky cost induces lower earnings persistence and lower earnings response coefficients. We further find that managers’ opportunistic expectation, firms’ adjusted costs and agency costs moderate the relationship between cost stickiness and ERC. Overall, our findings can contribute to the research of economical consequence in related literatures.
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Received: 25 December 2015
Published: 15 August 2016
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Corresponding Authors:
JIANG Dequan
E-mail: dqchiang@whu.edu.cn
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