ABSTRACT
This research aims to provide the empirical evidence regarding cost stickiness behavior and its determinants in listed manufacturing companies. Hypothesis testing is performed using the pooled least square method. The result concludes that there is cost stickiness behavior in selling, general, and administrative costs. In terms of determinants, firm specific adjustment costs measured by asset intensity and employee intensity have a positive significant impact on the level of cost stickiness. Meanwhile, earnings target and leverage have a negative significant impact on the level of cost stickiness. However, the management empire building incentives measured by free cash flow has no positive significant impact.
