Stakeholder orientation and cost stickiness

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8 Citations (Scopus)


We examine the relationship between stakeholder orientation and cost stickiness (i.e., managerial asymmetric resource allocation decisions in response to firms’ activities change). Using the staggered adoption of the U.S. non-shareholder constituency statutes as a proxy for stakeholder orientation, we find strong empirical evidence of a positive relationship between stakeholder orientation and asymmetrical cost behavior. We further show that stakeholder-orientated managers retain slack resources when firms’ activity declines because of agency problems. Our results are robust to alternative model specifications, related sub-sample analysis and various measures of costs.
Original languageEnglish
Article number100592
Pages (from-to)1-7
Number of pages7
JournalJournal of Behavioral and Experimental Finance
Early online date30 Oct 2021
Publication statusPublished - Dec 2021


  • Stakeholder orientation
  • Cost stickiness
  • Adjustment cost
  • Agency problem


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