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School of Accountancy
Massey Business School
Determinants and consequences of cost stickiness
My Ph.D. consists of three essays on determinants and consequence of cost behaviour. The first study investigates the association between financial constraints and cost stickiness. Using a large U.S. sample from 1976 to 2016, I find that financially-constrained firms exhibit cost anti-stickiness, i.e., costs increase proportionately less when sales increase; but decrease proportionately more when sales decrease. Such anti-stickiness is consistent with the 'adjustment cost theory' argument, as evidenced through the presence of cost anti- stickiness in five contextual settings. I also investigate whether the association between financial constraints and cost behaviour varies across the economic cycle. We find that cost anti-stickiness is observed during both economic expansion and economic contraction periods, although the effect is more pronounced during contraction. As resources drive the cost of a business, and financial constraints affect resource availability, studying the cost behaviour of constrained firms makes a valuable contribution to the existing cost stickiness literature.
I have completed Bachelor of Business Administration (B.B.A.) from North South University, Bangladesh and M.Sc. in Accounting and Finance from University of Leeds, U.K. Before moving to U.K. to pursue master I worked in a local bank. Upon completion of master's degree I worked in Leeds Beckett University, U.K. for two academic years. After I moved back to Bangladesh, I joined North South University as a Lecturer and later promoted to Senior Lecturer. Overall I have about six years of teaching experience in two different countries.
· Habib, A., Costa, M. D., Huang, H. J., Bhuiyan, M. B. U. and Sun, L. 2018. Determinants and consequences of financial distress: review of the empirical literature. Accounting & Finance (accepted and available in early view). Rank: ABDC – A.
· Habib, A., Costa, M. D. and Jia Jing. 2018. Determinants and consequences of financial constraints: Review of the empirical literature. (under review)
· Bhuiyan, M. B. U. and Costa, M. D. Audit committee ownership and audit report lag: Evidence from Australia. (under review)
· D’Costa, M., Talukdar, K.H. and Habib, A. 2016. In Light of the New Code Does Corporate Governance Impact Performance of Bangladeshi Firms? North South Business Review. 6 (2), pp. 1-22. ISSN: 1991-4938 (Print). Rank: ABDC – C.
· Habib, A., D’Costa, M., Talukdar, K.H. and Alam, K.M.S. 2015. Bangladeshi Start-ups: Their Preferred Sources of Capital and the Role of Incubators. North South Business Review. 6 (1), pp. 99-114. ISSN: 1991-4938 (Print). Rank: ABDC – C.
Conference Proceedings -
· Costa, M. D., Habib, A. and Bhuiyan, M. B. U. Financial constraints and cost stickiness. 13th World Congress of Accounting Educators and Researchers 2018, 08-10 November, Sydney, Australia.
· Habib, A., Bhuiyan, M. B. U. and Costa, M. D. Audit committee ownership and audit report lag: Evidence from Australia. Accounting and Finance Association of Australia and New Zealand (AFAANZ) 2018, 01-03 July, Auckland, New Zealand.
· Costa, M. D. Impact of CEO Duality and Board Independence on FTSE Small Cap & Fledgling Company Performance. 9th Asian Business Research Conference 2013, 20–21 December, Dhaka, Bangladesh. ISBN: 978-1-922069-39-9.
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Last updated on Tuesday 04 April 2017