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Cost response to decreasing activity is often smaller compared to rising costs when there is an increase in activity volume. The phenomenon of the cost response is often referred to as sticky cost behavior. This study aimed to determine whether there was sticky cost behavior in selling, general, and administrative (SG&A) costs of manufacturing companies listed on the Indonesia Stock Exchange (IDX). The observation period was in 2015-2017. The sample used was 258 manufacturing companies selected by using a purposive sampling technique. The type of data used was panel data using quantitative methods in the form of stationary with panel data regression tests with the Generalized Least Square (GLS) model. We found that there was no sticky cost behavior in the SG&A costs of manufacturing companies in Indonesia. This study implies that decision making on a scale of activity in a company is difficult to predict.

Objective: This study aimed to investigate the determinants of sticky cost behavior including adjustment costs, agency costs, political costs and corporate governance in the companies listed in the Tehran Stock Exchange, using the structural equation modeling (SEM) approach. Method: The sample included 1695 company-year in the years 2006-2017. The Smart_PLS program was used to obtain a good-fit model of cost behavior, and confirmatory factor analysis (CFA) was used to construct measurement models to validate the latent variables underlying the cost behavior model. Exploratory factor analysis (EFA) and multiple regression analysis were used to identify the determinants of cost stickiness. Results: The results showed that adjustment costs and agency costs are positively correlated with the degree of cost stickiness, but political costs and corporate governance are negatively correlated with the degree of cost stickiness. Conclusion: The results of this study are useful for managers to understand cost behavior needed for planning, controlling and reducing costs.

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