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School of Accountancy
Massey Business School
Determinants and consequence 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 a Bachelor of Business Administration (BBA) from the North South University, Bangladesh and MSc in accounting and finance from the University of Leeds, U.K. Before moving to the UK to pursue master's degree I worked in a local bank. Upon completion of my degree I worked in Leeds Beckett University, UK 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.
· Costa, M. D. andHabib, A. 2020. Trade credit and cost stickiness. Accounting & Finance (available in early view). Rank: ABDC – A. <https://doi.org/10.1111/acfi.12606>
· Habib, A., Costa, M. D., Huang, H. J., Sun, X. 2020. Financial constraints and workforce environment: An international investigation. International Review of Finance: Letters Section (available in early view). Rank: ABDC – A. < https://doi.org/10.1111/irfi.12302 >
· Bhuiyan, M. B. U. and Costa, M. D. 2020. Audit committee ownership and audit report lag: Evidence from Australia. International Journal of Accounting and Information Management. 28 (1), 96-125. ABDC – B. <https://doi.org/10.1108/IJAIM-09-2018-0107>
· Habib, A., Costa, M. D., Huang, H. J., Bhuiyan, M. B. U. and Sun, L. 2018. Determinantsand consequences of financial distress: review of the empirical literature. Accounting & Finance (available in early view). Rank: ABDC – A. <https://doi.org/10.1111/acfi.12400>
· Costa, M. D. and Habib, A. Trade credit and cost stickiness. 2019 Journal of Accounting, Auditing and Finance (JAAF) Conference, 30 July–02 August, Santiago, Chile.
· 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.
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Last updated on Tuesday 04 April 2017