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Cost Stickiness and Core Competency: A Note
Journal article   Peer reviewed

Cost Stickiness and Core Competency: A Note

Ramji Balakrishnan and Thomas S. Gruca
Contemporary accounting research, Vol.25(4), pp.993-1006
12/01/2008
DOI: 10.1506/car.25.4.2
url
https://papers.ssrn.com/sol3/Delivery.cfm/SSRN_ID1113775_code16602.pdf?abstractid=1113775&mirid=1View
Open Access

Abstract

Using data from Ontario hospitals, we investigate the conjecture that the stickiness of costs will be greater for functions that relate to an organization's core competency. We find that operating costs for a hospital as a whole are sticky. Moreover, we find higher stickiness in costs pertaining to patient care relative to costs in other functions. Indeed, there is no evidence of stickiness in the operating costs of support departments that are peripherally related to a hospital's mission. © CAAA.
Social Sciences Business & Economics Business, Finance

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