Active cost management in Argentinean banks: an empirical test of sticky costs
by Eliana Werbin; Marcela Porporato
International Journal of Economics and Business Research (IJEBR), Vol. 4, No. 6, 2012

Abstract: This study provides a test and analyses the existence and magnitude of sticky costs in an emerging economy's financial sector. The results use data from Argentinean banks between 2005 and 2010 (total costs increase 0.55% for every 1% total income increase and decrease only 0.13% per 1% total income decrease) and show that the sticky cost magnitude is similar but more pronounced than those documented in previous studies, both in central economies (Anderson et al., 2003; Calleja et al., 2006) and in emerging economies (Ribeiro de Medeiros and de Souza Costa, 2004). This kind of analysis' absence from Latin-American companies' financial sectors, particularly those in Argentina, is one of the main characteristics of this study. Its main contribution to the literature is the topic's novelty and its empirical validation in a G-20 emerging economy's financial sector.

Online publication date: Tue, 25-Nov-2014

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Economics and Business Research (IJEBR):
Login with your Inderscience username and password:

Username:        Password:          Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com