ACTIVE COST MANAGEMENT IN ARGENTINEAN BANKS: AN EMPIRICAL TEST OF STICKY COSTS

INTERNATIONAL JOURNAL OF ECONOMICS AND BUSINESS RESEARCH

INDERSCIENCE ENTERPRISE LTD

Año: 2012 vol. 4 p. 679 - 679

1756-9850

his 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 G20 emerging economy s financial sector.