Free Cash Flow, External Audit Quality and Cost Stickiness
Authors: 
Xiaoxue Cao, Yihua Zhao, Xing RongAuthors Info & Claims
Pages 428 - 434
Abstract
We use the data of A-share manufacturing listed companies in China from 2013 to 2019 to examine the impact of free cash flow on cost stickiness and explore the moderating effect of external audit quality. We find that the free cash flow increase cost stickiness and high-quality external audit can restrain the positive correlation between free cash flow and cost stickiness. Our empirical evidence indicates that cost stickiness may mitigate by improving corporate governance and audit quality. The results also add to literatures examining the influencing factors and mechanism of cost stickiness.
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Index Terms
- Free Cash Flow, External Audit Quality and Cost Stickiness
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Published In
July 2022
691 pages
ISBN:9781450396394
DOI:10.1145/3556089
Copyright © 2022 ACM.
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Association for Computing Machinery
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Published: 30 November 2022
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ICEME 2022
ICEME 2022: 2022 13th International Conference on E-business, Management and Economics
July 16 - 18, 2022
Beijing, China
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