المستخلص: |
This paper seeks to extend the literature on cost behavior by providing additional evidence on sticky cost behavior in emerging countries like Egypt. Moreover, this study aims to examine cost response to demand changes in the light of special political conditions, i.e., pre, during, and post the two successive Egyptian revolutions. The results of the study indicate that the total cost for the whole study period show cost anti-stickiness behavior as they increase by 0.56% and decline by 0.88% for the 1% increase and decrease in sales confirming the existence of asymmetric response of cost behavior in the Egyptian environment. Total costs, pre the two successive Egyptian revolutions, display cost stickiness behavior as they rise by 1.08% but they diminish by 0.68% when sales increase and decrease by 1%. During the two successive Egyptian revolutions, total costs exhibit insignificant results. Post the two successive Egyptian revolutions, total costs grow by 0.36% when sales rise by 1% but they decline by 0.98% when sales decrease by 1% reflecting cost anti-stickiness behavior.
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