• Journal of Digital Convergence
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• v.17 no.12
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• pp.109-115
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• 2019

The purpose of this study is to analyze the effect of Prior Sales change on R&D Costs and each detail item, and to analyze what decision managers make when changing sales. In order to conduct a more in-depth analysis as well as a one-period model of Anderson et al. (2003), which was used in previous studies, the two-period model of Banker et al.(2014) And analyzed the detailed items. As a result of the analysis, it is possible to confirm cost stickiness behavior only in the depreciation cost and others due to the limit of the model in the one period model. For a more in-depth analysis, the analysis of two-period model showed that labor costs and other items showed cost stickiness behavior when prior sales increased, but total R&D costs showed a anti-cost stickiness behavior. When prior sales decline, consigned service costs showed a cost stickiness behavior. This study is meaningful because it analyzed the effect of prior sales change on R&D cost behavior which were not performed in previous studies. Furthermore, we expect to be able to conduct more detailed research by sales and industry in future studies.

• Journal of Digital Convergence
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• v.18 no.4
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• pp.177-191
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• 2020

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.

• Journal of Digital Convergence
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• v.18 no.5
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• pp.145-155
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• 2020

The purpose of this study investigates the relationship between business strategy and cost behavior according to the corporate life cycle. To do so, I first examine the relationship between cost behavior and business strategy. And then, I analyze the effect of the business strategy on cost behavior conditional upon corporate life cycle based on listed Korean firms from 2000 to 2019. Specifically, the business strategy index is calculated by using the six continuous financial factors and the Prospector and Defender was defined on the score. Also, the corporate life cycle is distinguished based on the cash flow pattern. I find the evidence that the Prospector firms are likely to strengthen the asymmetry of cost behavior (cost stickiness), and examined that such a relationship was most strongly represented in the Introduction. This study is meaningful in that this is a more comprehensive analysis by examining business strategy and cost strategy according to the corporate life cycle and expand the application of financial information by using financial indicators to distinguish business strategies.