DOI QR코드

DOI QR Code

The Influence of Self-Overviewing Attributes of Franchise Firms on Cost Behavior

프랜차이즈 기업 경영자의 자기과시적 성향이 원가행태에 미치는 영향

  • Yeo, Seung Ho (Program in Consulting Department, Kumoh National Institute of Technology) ;
  • Koo, Jeong-Ho (Department of Business Administration, Kumoh National Institute of Technology)
  • 여승호 (금오공과대학교 컨설팅학과) ;
  • 구정호 (금오공과대학교 경영학과)
  • Received : 2020.02.18
  • Accepted : 2020.04.20
  • Published : 2020.04.28

Abstract

This study examines the effect of the self-overviewing attributes derived from agency problem on the cost behavior in franchise industry. To solve the research problem, we developed the proxies for self-overviewing attributes of domestic franchise CEO and used Anderson et al. (2003)'s cost behavior model to test hypothesis. Moreover, we grouped the self-overviewing variables for additional test. We find that operating costs are more sticky for firms which present higher CEO's self-overviewing attributes in franchise industry. Second, we find that the greater the self-overviewing tendency, more strengthened cost stickiness when sales decrease. This study is meaningful in that we developed proxies for self-overviewing propensity, such as the hypodermic behaviors of franchise CEO, which have not been performed in previous studies, to enhance future studies of franchise CEO. Futhermore, we empirically provide the effects of CEO's self-overviewing attributes on the operating costs behaviors, suggesting useful information to franchise stakeholders such as prospective start-ups, franchisee and investors.

본 연구는 프랜차이즈 경영자의 사적 효용 동기에서 비롯된 자기과시적 성향이 기업의 원가행태에 어떠한 영향을 미치고 있는지를 검정하고자 하였다. 연구 문제를 해결하기 위해 국내 프랜차이즈 경영자의 자기과시적 성향에 대한 대용치를 개발하고 이들 특성 변수를 그룹화하여 그룹별 독립변수가 영업비용인 종속변수에 미치는 영향을 다중회귀모형을 이용하여 비교·분석하였다. 연구 결과, 프랜차이즈 경영자의 자기과시적 성향은 매출 감소 시 영업비용의 하방경직성을 강화시키게 되고, 자기과시적 성향이 커질수록 하방경직성은 더욱 강화되어 나타났다. 본 연구는 기존 연구에서 수행되지 않았던 프랜차이즈 경영자의 갑질 행위 등의 자기과시적 성향에 대한 대용치를 개발하여 향후 프랜차이즈 경영자에 대한 연구를 강화하고, 기업의 영업비용에 미치는 경영자의 자기과시적 속성의 영향을 확인함으로써 예비창업자, 가맹점주, 투자자 등의 프랜차이즈 이해관계자에게 유용한 정보를 제공할 것이다.

Keywords

References

  1. J. Y. Park, K. U. Roh & J. Y. Choi. (2008). The Influence of Franchisors' Supportive Activities on Franchisees' Loyalty and Performance in the Franchised Restaurants. Journal of Digital Convergence. 6(2). 77-86.
  2. M. R. Anderson, R. Banker & S. N. Janakiraman. (2003). Are Selling, General, and Admini- strative Costs 'Sticky?' Journal of Accounting Research. 41 (1). 47-63. https://doi.org/10.1111/1475-679X.00095
  3. S. H. Hsu & C. C. Chang. (1990). An Adjustment-Cost Rationalization of Asset Fixity Theory. American Journal of Agricultural Economics. 72. 298-308. https://doi.org/10.2307/1242333
  4. R. Balakrishnan,, M. J. Petersen & N. S. Soderstrom. (2004). Does Capacity Utilization Affect the 'Stickiness'of Cost? Journal of Accounting. Auditing and Finance. 19(3). 283-299. https://doi.org/10.1177/0148558X0401900303
  5. M. Jensen & W. Meckling. (1976). The Theory of the Firm : Managerial Behavior, Agency Costs, and Ownership Structure. Journal of Financial Economics. 3. 305-360. https://doi.org/10.1016/0304-405X(76)90026-X
  6. C. H. Chen, H. Lu & T. Sougiannis. (2013). The Agency Problem, Corporate Governance, and the Asymmetrical Behavior of Selling, General, and Administrative Costs. Contemporary Accounting Research. 29 (1). 252-282. https://doi.org/10.1111/j.1911-3846.2011.01094.x
  7. M. Jensen. (1986). Agency Costs of Free Cash Flow, Corporate Finance, and Takeovers. American Economic Review. 76. 323-329.
  8. S. R. N. Kim & H. Y. Ryu. (2014). Managerial Overconfidence and Cost Stickiness. Korean Accounting Journal. 23 (6). 309-345.
  9. G. K. Noh & J. E. Lee. (2019). The Effects of Prior Sales Change on Asymmetric Cost Behavior of R&D Costs. Journal of Digital Convergence. 17(12). 109-115. https://doi.org/10.14400/JDC.2019.17.12.109
  10. B. Lev & R. Thiagrajan. (1993). Fundamental Information Analysis. Journal of Accounting Research. 31(1). 191-215.
  11. C. A. Hennessy & A. Levy. (2002). A Unified Model of Distorted investment : Theory and Evidence, Working Paper. University of California at Berkeley.
  12. S. H. Yeo & J. H. Koo. (2019). A Study on Cost Behaviors of the Franchise Firms in Korea. Review of Accounting and Policy Studies. 24(3). 39-71. https://doi.org/10.21737/RAPS.2019.08.24.3.39
  13. T. B. Veblen. (2007). The Theory of The Leisure Class. OUP Oxford.
  14. C. H. Chen, H. Lu & T. Sougiannis. (2008). Managerial Empire Building. Corporate Governance and the Asymmetrical Behavior of Selling. General and Administrative Costs. Working Paper.
  15. M. L. Hayward & D. C. Hambrick. (1997). Explaining the premiums paid for large acquisitions : Evidence of CEO hubris. Administrative Science Quarterly. 42(1). 103-127. https://doi.org/10.2307/2393810
  16. S. Plous. (1993). The psychology of judgment and decision making. Mcgraw-Hill Book Company.
  17. T. C. Campbell, M. Gallmeyer, S. A. Johnson, J. Rutherford & B. W. Stanley. (2011). CEO optimism and forced turnover. Journal of Financial Economics. 101(3). 695-712. https://doi.org/10.1016/j.jfineco.2011.03.004
  18. U. Malmendier & G. Tate. (2005). CEO Overconfidence and Corporate Investment. Journal of Finance. 60(6). 2661-2700. https://doi.org/10.1111/j.1540-6261.2005.00813.x
  19. M. L. Hayward, V. P. Rindova & T. G. Pollock. (2004). Believing one's own press : The causes and consequences of CEO celebrity. Strategic Management Journal. 25(7). 637-653. https://doi.org/10.1002/smj.405
  20. A. S. Ahmed & S. Duellman. (2013). Managerial overconfidence and accounting conservatism. Journal of Accounting Research. 51(1). 1-30. https://doi.org/10.1111/j.1475-679X, 2012,00467.x
  21. H. Y. Ryu & S. R. N. Kim. (2015). Managerial Overconfidence and Accounting Conservatism. Korean accounting review. 40(6). 41-80
  22. J. Heaton. (2002). Managerial Optimism and corporate finance. Financial Management. 31. 33-45. https://doi.org/10.2307/3666221
  23. I. Ben-David, J. Graham & C. Harvey. (2010). Managerial Miscalibration. Working paper. Duke University.
  24. U. Malmendier & G. Tate. (2008). Who Makes Acquisitions? CEO Overconfidence and the Market's Reason. Journal of Financial Economics. 89(1). 20-43. https://doi.org/10.1016/j.jfineco.2007.07.002
  25. S. Deshmukh, A. M. Goel & K. M. Howe. (2010). CEO overconfidence and dividend policy. Working paper. DePaul University.
  26. U. Malmendier, G. Tate & J. Yan. (2011). Overconfidence and Early-Life Experiences : The Effect of Managerial Traits on Corporate Financial Policies. Journal of Finance. 66(5). 1687-1733. https://doi.org/10.1111/j.1540-6261.2011.01685.x
  27. R. D. Banker & L. Chen. (2006). Predicting Earnings Using a Model Based on Cost Variability and Cost Stickiness. The Accounting Review. 81(2). 285-307. https://doi.org/10.2308/accr.2006.81.2.285
  28. R. D. Banker, D. Byzalov & J. M. Plehn-Dujowich. (2013). Demand Uncertainty and Cost Behavior. The Accounting Review. 89 (3). 839-866. https://doi.org/10.2308/accr-50661
  29. D. C. Yang & J. H. Koo. (2016). Managerial Optimistic Bias and Asymmetric Cost Behavior. Korean Accounting Journal. 25 (6). 159-186.
  30. S. H. Chang & T. Y. Paik. (2009). The Effect of Corporate Business Conditions on the Asymmetric Cost Behavior: Roles of Cost Management and Earnings Management. Korean accounting review. 34(4). 71-107.
  31. H. E. Mun & C. K. Hong. (2010). A Comprehensive Analysis of Asymmetric Cost Behaviour and its inter-industry differences. Management Accounting Study. 10(1). 1-38.
  32. J. H. Koo. (2011). The effect of earnings management incentives on the asymmetric cost behavior: Focusing on loss avoiding, income smoothing and big-bath. Korean accounting review. 36(3). 135-177.
  33. K. S. Choi & J. M. Choi. (2014). The Effect of Firm's Strategy in Investment Decision. Journal of Digital Convergence. 12(3), 177-187 http://dx.doi.org/10.14400/JDC.2014.12.3.177
  34. M. N. Jo & D. H. Lee. (2016). The Impact of CEO's Values System and Employee's Awareness, Sympathy on Organizational Performance. Journal of Digital Convergence. 14(12), 95-103 http://dx.doi.org/10.14400/JDC.2016.14.12.95