Massey Documents by Type

Permanent URI for this communityhttps://mro.massey.ac.nz/handle/10179/294

Browse

Filters

2016 - 20202

Settings

Subject: search.filters.subject.Cost

Search Results

Now showing 1 - 2 of 2
  • Thumbnail Image
    Item
    Determinants and consequence of cost stickiness : a thesis presented in partial fulfilment of the requirements for the degree of Doctor of Philosophy in Accountancy at Massey University, Auckland, New Zealand
    (Massey University, 2020) Costa, Mabel D
    This research investigates the determinants and consequence of cost stickiness using data of publicly listed U.S. firms. Understanding the determinants of cost stickiness and its implications is extremely crucial, since it affects firms’ profitability, consequently, shareholders’ wealth. Moreover, cost management has even wider repercussions for both debt and equity investors in the areas of risk assessment and the trust of customers, employees, and other stakeholders in the community. Therefore, this study is organised into three different research essays: (i) financial constraint and cost stickiness; (ii) trade credit and cost stickiness; and (iii) cost stickiness and firm value. Essay One 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 less cost stickiness. I document that such low-cost stickiness supports both “good” and “bad” arguments depending on the managerial motivation, namely: earnings management incentives, agency problem and value-creating potential of SG&A costs. I also investigate whether the association between financial constraints and cost stickiness varies across the economic cycle. I find that low cost stickiness is observed during both economic expansion and economic contraction periods, although it is more pronounced during contraction. As resources drive the cost of a business, and financial constraints affect resource availability, studying cost behaviour of constrained firms makes a valuable contribution to the existing cost stickiness literature. In Essay Two, I examine the relation between trade credit and cost stickiness and further investigate the moderating effects of agency problem, product market competition, and customer concentration. I find that firms using high levels of trade credit exhibit lower cost stickiness and this is prevalent in the high agency problem sub-sample. In addition, in a non-competitive market, where the agency problem arises owing to lack of competition, trade credit plays an external monitoring role by attenuating cost stickiness. However, high customer concentration curtails this monitoring ability of trade credit providers. Finally, in Essay Three, I investigate the association between cost stickiness and firm value, and examine whether the association, if any, is mediated by cost of equity capital and cash flows. Using a large sample of U.S. data, I find a robust negative relationship between cost stickiness and firm value. I then explore whether resource adjustment, managerial expectations, and agency theories of cost stickiness affect the negative relation, and find some support for the agency view. Furthermore, I find evidence that the detrimental impact of cost stickiness on firm value is mediated partially through the cost of equity and cash flow channels. I enrich the cost management literature by integrating cost asymmetry with corporate finance.
  • Thumbnail Image
    Item
    Comparative analysis of the productivity levels achieved through the use of panelised prefabrication technology with those of traditional building system : a thesis submitted in fulfilment of the requirements for the degree of Doctor of Philosophy (PhD) in Construction, School of Engineering & Advanced Technology, Massey University, Albany, New Zealand
    (Massey University, 2016) Shahzad, Wajiha
    Several studies have documented benefits of prefabricated building system compared to the traditional approach. Despite the acknowledged benefits of refabrication, its application is generally low in the New Zealand construction industry. This low uptake is largely attributed to the fact that the documented benefits of prefabrication technology are anecdotal, or based on investigations of isolated case studies. This study aims to contribute to filling this knowledge gap by analysing cost savings, time savings, and productivity improvement achievable by the use of panelised prefabrication in place of the traditional building system. A two-phased mixed method of research was adopted for the study. The first phase involved the use of case study-based archival research to obtain qualitative data from records of 151 completed building projects in three cities of New Zealand – Auckland, Christchurch and Wellington. The second phase involved the use of questionnaire survey to obtain feedback from industry stakeholders. Results showed that the use of panelised prefabrication in place of traditional building system contributed to 21 percent cost saving, 47 percent time saving and 10 percent average improvement in the productivity outcomes in the building projects. Results further showed that 17 factors could significantly influence the levels of benefits achievable with the use of prefabrication technology. ‘Building type’ and ‘location’ were the factors having the most significant influence on the benefits achievable by the use of panelised prefabrication in place of the traditional building systems. Other factors that influence the benefits of prefabrication included (in diminishing order of influence): logistics, type of prefabrication, scale/repeatability, standardisation, contractor’s level of innovation, environmental impact, project leadership, type of procurement, whole of life quality, site conditions, site layout and client’s nature.