Abstract
This study analyzes the influence of CPS on cost stickiness. Also it analyzes whether the influences are different by the type of CEO(whether the CEO is a owner manager or a professional manger). For this purpose, it collects samples from Korean companies which were listed in Korean Stock Exchange from 2013 to 2021. From the analysis using total samples, there was no significant relation between CPS and cost stickiness of SG&A. Then, this study divided the sample by owner managers’ companies and professional managers’ companies. From the analysis using owner managers’ companies, it was found that CPS was weakening the cost stickiness of SG&A. On the other hand, from the analysis using professional managers’ companies, it was found that CPS was strengthening the cost stickiness of SG&A. The results of this study suggests that agency cost should be considered prior to CPS on the issue related to cost stickiness, Also, it seems that CPS strengthens the effect of the agency cost to the cost stickiness. Finally, the result of this study suggests that the direction of the impact on the company may vary depending on the type of CEO even if they are in similar level of CPS.
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