Meanwhile, Subramaniam & Weidenmier (2003) also find sticky cost behavior on product costs, in particular cost of goods sold (COGS). The managers must consider the benefit and the risk of cutting unutilized resources against current and future economic condition related to the adjustment costs such as the costs of hiring and training new employees, and buy new fixed assets (Anderson, 2003). If net sales decrease in the short of period, the managers tend to adjust the cost. In addition, the costs will be difficult to adjust immediately when net sales recover in the period (Anderson, 2003). Banker &Byzalov (2014) argues that agency problem can affect sticky cost behavior. They find that cost stickiness is high when the firm uses more resources such as labor. This is because, labor is human resource that exploit by the company in order to earn firm’s benefit such as, the revenue. This argue is supported by Anderson, Banker, & Janakiraman (2003).On the other hand, Banker, Flasher, & Zhang (2013) that the degree of costs stickiness as a result from deliberate managerial decision towards resource adjustments is affected by the firm’s strategic positioning in the business environment. Kama & Weiss (2013) examine how self-interested managers may take advantage by making deliberate managerial decisions when net sales decrease to meet earnings target and avoid losses that can affect the degree of costs stickiness. It took 97.547 firms from 1979 to 2006, they found the indication when net sales drop, self-interested of the managers may meet earning target and attempt to avoid the losses by reduce the costs and dispose unutilized resources. Therefore, the degree of costs stickiness can be affected by pressure and high earning targets from top level of management. In addition, the managers focus on the management incentives. Thus
; on the other hand, earnings management is that internal management use accounting or real transactions to adjust the financial reports. It is difficult for institutional investors to accurately identify the earnings management of listed companies even if they spend more information collection costs. Management can show good performance by re- ducing costs when the revenue rises and falls, but it is more likely to have a loss due to the decline of operating revenue, which has a double negative impact on the company. Therefore, when revenue declines, management have more pres- sure and motivation to cut costs. Due to the adjustment costs, if managers expect the decline in operating income to be temporary, managers are not willing to cut idle costs, leading to cost stickiness. However, when listed companies prepare to implement private equity placement, companies need good performance to at- tract subscriptions and raise the issue price. Managers will deliberately reduce costs when operating income declines. They may reduce actual costs such as ad- vertising expenses and general management fees resources  . They may also reduce the book cost by reversing the provision for bad debts and the provision for decline in inventory (Jiang Wei, 2015 ), so as to increase the costs decline degree when revenue decline and then weaken the company’s cost stickiness.
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This paper studies the influence mechanism of different ownership concentra- tions on the relationship between cost stickiness and enterprise risk, makes up the blank in the research of the relevant economic consequences to enterprise risk, and improves the development of the existing research on cost stickiness and the study of enterprise risk management. This paper may be a reference for later scholars’ research about the cost stickiness and enterprise risk. At the same time, this paper can also help enterprises take more effective measures in prac- tice to control cost stickiness level in the case of the macroeconomic uncertainty and the management to make more accurate decisions. For the enterprise, this paper can offer references to develop a reasonable measure to reduce the deci- sion-making risk and to promote the competitiveness in the market.
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Domestic studies have found similar results: Sun Zheng and Liu Hao (2004)  studied the “stickiness” behavior of the operating expenses and management expenses of Chinese listed companies, and concludes that the cost and expense of listed companies are not symmetrical to the change of business volume. The following studies conducted empirical tests on the cost stickiness of China’s listed companies from the aspects of company characteristics, industry differ- ences and regional differences (Liu Wu, 2006, Chen Canping, 2008, Liu Yanwen and Wang Yugang, 2009). Kong Yusheng et al. (2007) studied the cost stickiness and extended it to the operating cost, and found that the operating cost of Chi- na’s listed companies also had the problem of stickiness . Che Ximei and ChenXuan (2013) studied the influence of management’s self-interested beha- vior on cost stickiness. Cao Xiaoxue et al. (2009) studied the impact of the inte- rim measures on the performance assessment of central enterprise executives on the cost stickiness of central enterprises in China .
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However, all our findings need to be validated by further research in certain aspects. The focus of this study has been to examine the association between cost stickiness and performance. Based on some of the common characteristics for emerging markets, particularly South East Asian countries, a few extensions can be further built upon this analysis. Firstly, more in-depth insights can be gained through an examination of the role of ownership expropriation. The different cost stickiness impacts among family firms, government linked companies, and multinantional companies might give interesting insights. Secondly, some corporate governance attributes such as audit board, board structure, or board compensation can be interesting extensions of study for this analysis.
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according to Weiss (2010), and the value of this variable is 1 when it represents a negative (－) value and 0 otherwise. STICKYD2 is also a dummy variable that measures downward cost stickiness of Weiss (2010) based on total cost. The value of this variable is 1 when it represents a negative (－) value and 0 otherwise. In other words, enterprises that show downward sticky cost behavior are granted with a value of 1 for dummy variables. The mean values (median values) of STICKYD1 and STICKYD2 were found to be 0.194 (0) and 0.368 (0), respectively. STICKY1 is a value that multiplied (-1) with the continuous variable for downward cost stickiness of Weiss (2010) measured by selling and administrative expenses. STICKY2 is a value that multiplied (-1) with the continuous variable for downward cost stickiness of Weiss (2010) measured by total cost. Therefore, larger positive (+) values of STICKY1 and STICKY2 can be interpreted as greater downward stickiness of cost behavior. The mean (median) values of these variables were respectively 0.178 (0.175) and 0.224 (0.135), showing positive (＋) values. The majority of enterprises were confirmed to have downward sticky behavior of cost. The mean (median) value of asset intensity variable SIZE was 1.634 (1.095), and its maximum and minimum values were 16.891 and 0.324. This shows a great difference in asset intensity between enterprises. The mean (median) value of employee variable WORKER was 0.003 (0.002), and the mean (median) value of cash flow variable for operating activities of the current term CFO was 0.052 (0.088). The mean (median) value of dummy variable on reduction of sales for term t-1 compared to term t-2, SALES, was 0.239 (0.000). Only 24% of enterprises showed reduction in sales during term t-1 compared to term t-2.
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the extant literature, of how firms’ strategic types affect investors’ demand for analyst coverage as well as the task complexity associated with covering and forecasting the earnings of firms employing different strategies. Bentley et al. (2017) examine only the demand side of impacts of corporate strategy on analyst coverage and forecast accuracy. However, my thesis also considers the supply side of effects of corporate strategy, which arise from variation in task complexity, and finds that the task complexity effect associated with firms’ discretionary disclosure is the dominant impact of corporate strategy on analyst coverage decision. Further, I extend Bentley et al. (2017) by considering the potential impacts of corporate strategy on coverage arising from analysts’ incentives to encourage investment banking business. Secondly, the results from my thesis show the importance of industry-level strategic information, and the extent to which individual firms’ conformity with the strategic orientation of their industry affects analyst behavior. Finally, the results from Study 3 reveal how firms’ strategic types can be used to identify firms’ cost behavior and how analysts’ knowledge of this association affect their forecasting efficiency. Unlike Ciftci et al. (2016) who suggests that analysts have a poor understanding of the variability and stickiness of firms’ expenses as the degree of cost stickiness increases, I find evidence that analysts have the ability to recognise and accommodate at least some inherent differences in the likelihood of sticky cost behaviour across firms by strategic types. It is when firms (e.g. Defenders) exhibit abnormally high level of cost stickiness that analyst forecast efficiency is impaired by the positive association between cost stickiness and analyst forecast optimism.
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If we broaden the category of our interest to rational expectations, we can find numerous literature focusing on inflation dynamics under price stickiness with im- perfect and heterogeneous information. The literature relates to this chapter in the sense that they assume the information on economic structure is not complete to each individual firm. Demery and Duck (2001), Nimark (2008), Angeletos and La’O (2009), and Lorenzoni (2009) show gradual response of inflation when idiosyncratic or noisy factors are mixed with aggregate shocks. However, these are for marginal cost, demand, or productivity shocks which are not appropriate for analysing of the non-neutrality of money. Even though Hellwig and Venkateswaran (2009) 12 deal with monetary shocks, they assume a fully flexible economy in which firms are free to adjust their prices, which is inadequate for analysing the effect of price stickiness on the non-neutrality of money. However, the biggest difference between these pa- pers and the model of this chapter is that firms are able to have exact information on how the other firms reset their prices. In the literature, firms know that all firms have the same optimization problem 13 even though their information on the shocks is incomplete and different from one another. Also, the idiosyncratic or noisy parts which give rise to uncertainty or incompleteness of the information are assumed to be drawn from certain distributions which are known to firms exactly. Therefore, firms can calculate the probability of distribution of other firms’ prices, and the pre- dictions are consistent with the realized one. However, in this chapter, firms neither have an idea on the other firms’ optimization problems nor on the distributions of the idiosyncratic or noisy shocks.
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This study developed a R & D-based endogenous growth model by introducing money growth and a price adjustment process. This study assumed that nominal wage is adjusted stickily because of adjustment cost and derived the new Keynesian Phillips curve, under which money is not super neutral even in the long-run.
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Stickiness problem occur in many industries such as cereal industry, confectionary industries, dairy industries, powder industries and packaging materials industries. In cereal industry, sticky dough causes low dough mixing tolerance, reduced dough strength and also reduces dough volume . Stickiness problem lower the product quality and have a very negative effects in bread making processing. Other than that, in food packaging materials the adhesion or sticking of food materials was affects consumers’ confidence in the quality of the product and also lower the product utility. Adhesion or sticking food materials in food cans or packages affect consumers’ confidence. Thus, it shows that stickiness problem happen not only in palm oil mill industry but also in many food industries such as cereal industries, confectionery industries, dairy industries and powder industries.
In a two-sector New-Keynesian model, this paper shows that the dispersion in the degree of sectoral price stickiness plays a key role in the determination of the dynamics of aggregate inflation and, consequently, of the whole economy. The dispersion in price stickiness reduces the persistence of inflation and, to a smaller extent, of the interest rate. It also reduces the volatility of inflation, the interest rate and the output-gap. Thus two economies with the same average degree of price stickiness but a different variance may behave very differently, highlighting the relevance of sectoral data for economic
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The meiotic course in all these accessions has been observed to be abnormal with the presence of cytomixis, chromosome stickiness, unoriented bivalents, chromatin bridges, laggards at anaphases and telophases, formation of micronuclei and abnormal microsporogenesis leading to variable pollen sterility (Tables 2, 3).The cytomixis remained to be the chief phenomenon of the meiotic system in all the accessions. The cytomixis in the form of cytoplasmic connections as well as transfer of chromatin between PMCs is seen right from the prophase-I to pollen formation and may involve many PMCs (Fig. 1b). Cytomixis in these accessions results into the production of PMCs with different chromosome numbers and even empty PMCs. It is seen that mostly late or non-disjuncting bivalent bridges as well as chromosomal laggards are more common (Figs. 1c,d). Chromatin stickiness involving few bivalents or whole complement is seen from prophase-I to metaphase-I (Fig. 1c). The cytomixis inducing abnormalities ultimately end up in multipolarity with the formation of highly variable number of nuclei per PMC. This results into abnormal microsporogenesis leading to the formation of monads, diads, triads and polyads (Figs. 1e-h). Further, micronuclei have also been observed in most of these accessions (Figs. 1e-g; Table 3). All these meiotic abnormalities lead to the formation of heterogeneous sized fertile pollen grains in all the accessions (Fig.1i).
Ethyl Methane Sulphonate (EMS)is a powerful chemical mutagen that is capable of inducing mutations at a faster rate. Specific effects of this mutagen on the chromosomes of the plant Capsicum annuum L. cvJwalamukhi was the subject of this study. Different treatments (0.1-0.4% EMS) were done and seedlings from each treatment were grown under uniform environmental conditions. A set of control plants was also maintained. EMS was found to affect the floral structure and alter behaviour of chromosomes during meiosis. There are some flowers with more than the usual number of petals and stamens and also the normal size of gynoecium. At the same time, flowers with reduced petals and stamens were also noticed. Abnormally enlarged gynoecium was noticed in flowers treated with 0.4 % EMS. Cytological preparations showed various kinds of abnormalities such as chromosome stickiness, laggards, bridges, micronuclei, spindle disturbances etc. in meiosis. The study proved potent mutagenic effects of EMS on the plant C. annuum.
2.2. Spot rate subdiffusion models. Although the classical diffusion models can capture some important features of interest rates such as mean reversion, they still have some limitations. The changes in interest rates, especially short-term rates, tend to occur infrequently. After the global financial crisis in 2008, the short-term rates for many countries stay at close to ZLB level for extended periods of time. This stickiness phenomenon of interest rates offers serious challenge to the classical models since they cannot produce sustained periods of constant interest rates. To capture the stickiness in interest rates, we extend the spot rate diffusion models to spot rate subdiffusion models.
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A correlation analysis between the milled rice kernel size and the instrumental parameters (H1, A2) was performed using PROC CORR in SAS. The PLSR models between the instrumental methods and sensory analysis were determined using the multivariate analysis software Unscrambler (version 7.5, CAMO, Trondheim, Norway). Depending on the sensory attributes, specific instrumental parameters were chosen to determine the PLS regression model. The instrumental parameters that were used from a DC test to predict manual stickiness, initial cohesion, adhesion to lips, and toothpull (which represents stickiness), were T1, A2, H2, T2, and A4 (Fig. 1) while the parameters used from a SC test to predict the sensory attributes related to stickiness were H2 and A2 (Fig. 2). The instrumental parameters that were used to determine the PLSR model for hardness with data from a DC test were A1, A3, H1, H3, T1, and T2. For a SC test, A1 and H1 were used to predict hardness. All the variables were centered and weighted by the reciprocal of their standard deviation (i.e. standardized), giving each variable the same chance to influence the predictive models. A full cross-validation method was used to determine the robustness of the model predicting texture characteristics. Various statistical index was calculated to estimate a model robustness or stability. That is, the coefficient of determination for calibration (R 2
EMS treatment produced various types of meiotic abnormalities in Capsicum annuum cultivar variety Jwalamukhi. The frequency of abnormalities increased with increase in concentration of the mutagen. The major abnormalities observed was univalents at anaphase, stickiness at anaphase, association of bivalents, non-disjunction at anaphase, laggards at anaphase and micronuclei at telophase and in microspores. The percentage of abnormalities was found to be higher in 0.4% than other concentrations of EMS.Pollen fertility decreases with increase in concentration of EMS.
is being performed with the goal of achieving a mea- surement of honeydew contamination within seconds of heating the cotton sample. To accomplish this, it must be demonstrated that a relationship exists be- tween total volatile production and the rate of vola- tile production. Assuming that this relation exists, then the initial rate of volatile production upon heat- ing will be a function of the initial concentration of surface sugars, as well as temperature. Methodolo- gies for the measurement of volatile compounds used for real-time monitoring are currently under investi- gation, including Photoionization Detection and Ion Mobility Spectroscopy, both of which have demon- strated utility as rapid, cost-effective and reliable methods for monitoring volatile emissions from ex- plosives, narcotics, etc. The Ion Mobility Spectrom- eter is currently being investigated for utilization in the separate but related problem of rapidly identify- ing plastic waste in cotton (Eiceman et al. 2002), with promising results. The ultimate goal is the develop- ment of a system which can be used in the field, at the gin, or in the textile mill to detect sticky cotton rapidly and reliably.
The argument that sluggish cost adjustments require an inflationary policy also fails to pass muster. Menger´s imputation theory of value demonstrates that higher order goods are assigned value through imputation from the lower orders. The costs of inputs for lower order goods are merely the prices of higher order goods. Most importantly, the very task of entrepreneurs is to forecast future prices of their products and bid for their factors of production accordingly. In other words, factor prices move in response to an expected change in the demand for money before consumer goods’ prices. Free bankers deem it better to frustrate this process by allowing a flexible money supply to allow consumer goods´ prices to increase when input costs “fail” to adjust downward.
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The concept of development has matured from being indicative of aggregative progress to being sensitive to inequality and exclusion within the whole, giving rise to the coinage Inclusive Development. This notion speaks of bridging gap between ethnic/social groups within a nation in domains like livelihood, social status, political empowerment, cultural freedom, among others. This would depend on temporal movement of different groups and intergenerational mobility can act as a mechanism to achieve social fluidity and greater inclusion. Present paper explores the role of intergenerational stickiness in perpetuating such disparity across social groups in India. We argue that economic status is intricately linked to what a person does for livelihood, i.e. her occupation, and what remuneration she receives for it, i.e. her wages. In present world system, occupation and wages are also critically determined by the human capital quotient of the individual, marked generally by her educational level. Therefore, the socioeconomic structure of a country and its temporal movement would be shaped by intergenerational mobility in education, occupation and income for different social groups. Higher (upward) mobility for the lagging classes would lead to catching up and convergence while lower mobility for them would lead to widening gaps. It is our contention that persistence of economic inequality across social groups in India is associated with high parental impact and low intergenerational mobility for the historically lagging and excluded social groups. Technically both Transitional Matrix and Regression based econometric techniques are used to estimate parental impact on respondent’s status as well as the role of social background in influencing the magnitude of the parental impact itself in Indian context during the last two decades. Aggregate mobility is transformed and decomposed into Structural and Exchange mobilities to facilitate comparability across time using Altham-Ferrie technique. Covering unchartered territory, this paper also looks at possible linkages of stickiness/mobility with several micro- and macro-economic indicators to
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Galí and López-Salido (2000) provide evidence on the t of the New Keynesian Phillips Curve (NKPC) for Spain over the period 1980-1998. They found that NKPC ts the data well, however, the backward-looking component of in ation is important but the price stickiness implied by the model is plausible. They also found that the price of imported intermediate goods affects the measure of the rm's marginal cost and thus also in ation dynamics, and nally labour market frictions appear to have also played a key role in shaping the behaviour of marginal costs, but do not affect signi catively the structural parameters
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