Windyastuti Windyastuti, Kunti Sunaryo, Sri Hastuti


This study aimed to analyze the response of investors to the announcement of the financial statements of the banking sector. The population in this study was the banking industry. This study used purposive sampling method. Based on sampling techniques the number of samples in this study was 11 banks. The research period was 2002-2014. The analysis technique used was panel data regression. The result showed that investor response to the financial statements of banks which faced cost stickiness was weak. The increase of cost stickiness on the banking sector led the weak investor response to the announcement of the financial statements of banks. In the banking companies facing cost stickiness problem, earnings prediction accuracy reduced. This causes the income statement would provide information that was less important to the earnings prediction in the next periods.


Cost Stickiness, Financial Statement, Earnings, Response of Investors

Full Text:



Aboody, D., Levi, S., & Weiss, D. 2014. Operating Leverage and Future Earnings. Working Paper. Anderson School of Management at UCLA.

Anderson, M.R., Banker, R. H., & Janakiraman, S. 2007. Cost Behavior and Fundamental Analysis of SGA Costs. Journal of Accounting, Auditing & Finance, 22(1): 1–22.

Banker, R.D., Byzalovy, D., & Plehn-Dujowichz, J.M. 2011. Sticky Cost Behavior: Theory and Evidence. Working Paper. Temple University.

Bon-Kim, J. & Wang, K. 2014. Labor Unemployment Risk and Sticky Cost Behavior. Working Paper. City University of Hong Kong.

Bu, D., Wen, C., & Banker, R.D. 2015. Implications of Asymmetric Cost Behaviour for Analyzing Financial Reports of Companies in China. China Journal of Accounting Studies, 3(3): 181-208.

Ciftci, M., Mashruwala, R., & Weiss, D. 2013. Do Financial Analysts Recognize Firms’ Cost Behavior? Working Paper. SUNY at Binghamton.

Ciftci, M., Mashruwala, R., & Weiss, D. 2016. Implications of Cost Behavior for Analysts' Earnings Forecasts. Journal of Management Accounting Research, 28(1): 57-80.

Hatem, B.S. 2015. What Determines Cumulative Abnormal Returns? An Empirical Validation in the French Market. International Business Research, 8(12): 89-95.

He, D., Teruya, J., & Shimizu, T. 2010. Sticky Selling, General, and Administrative Cost Behavior and its Changes in Japan. Global Journal of Business Research, 4(4): 1-10.

Hedberg, P. & Lindmark, A. 2013. The Possible Beginning of an End: A Study of the Post Earnings Announcement Drift on the Swedish Stock Market. Bachelor Thesis. Uppsala University.

Kama, I. & Weiss, D. 2010. Do Managers Deliberate Decisions Induce Sticky Costs? Working Paper. Tel Aviv University.

Kaspereit, T. 2016. Asymmetric Cost Behavior and Analyst Earnings Forecasts Revisited: Evidence from a New Firm-year Measure of Cost Stickiness. Paper at Annual Meeting of the American Academic Accounting Association. New York.

Kim, M. & Prather-Kinsey, J. 2010. An Additional Source of Financial Analysts' Earnings Forecast Errors: Imperfect Adjustments for Cost Behavior. Journal of Accounting, Auditing & Finance, 25(1): 27-51.

Siringoringo, R. 2012. Karakteristik dan Fungsi Intermediasi Manufaktur di Indonesia. Buletin Ekonomi Moneter dan Manufaktur, 15(1):61-83.

Weiss, D. 2010. Cost Behavior and Analysis Earnings Forecasts. The Accounting Review, 85(4): 1441-1471.

Windyastuti, 2013. Derajat Cost Stickiness Sektor Perbankan dan Pertumbuhan Ekonomi, Jurnal Keuangan dan Perbankan, 8(3): 497-504.



  • There are currently no refbacks.

Jurnal Keuangan dan Perbankan (Journal of Finance and Banking)

Diploma Program of Banking and Finance, Faculty of Economics and Business, University of Merdeka Malang

Published by University of Merdeka Malang

Mailing Address:
2nd floor Finance and Banking Building, Jl. Terusan Raya Dieng No. 57 Malang, East Java, Indonesia
Phone: +62 813-3180-1534

This work is licensed under a Creative
Commons Attribution-ShareAlike 4.0