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The Effect of Financial Statement Comparability on Cost Stickiness

Heung‐Jae Jeon & Sumi Jung

Journal of International Financial Management and Accounting2026https://doi.org/10.1111/jifm.70009article
AJG 2ABDC A
Weight
0.50

Abstract

This study examines the impact of financial statement comparability on asymmetric cost behavior, commonly known as cost stickiness. Using a comprehensive U.S. sample (1999–2020), we document a positive association between greater comparability and increased cost stickiness. The relationship is markedly stronger for firms facing high uncertainty and for firms whose analyst forecasts are less accurate or more dispersed. We also find that higher comparability notably raises the likelihood of subsequent sales growth and increases the future value derived from incurred costs. Overall, more comparable accounting enables managers to convert slack resources into profits and design strategies to bolster future sales.

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https://doi.org/https://doi.org/10.1111/jifm.70009

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@article{heung‐jae2026,
  title        = {{The Effect of Financial Statement Comparability on Cost Stickiness}},
  author       = {Heung‐Jae Jeon & Sumi Jung},
  journal      = {Journal of International Financial Management and Accounting},
  year         = {2026},
  doi          = {https://doi.org/https://doi.org/10.1111/jifm.70009},
}

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The Effect of Financial Statement Comparability on Cost Stickiness

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Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

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