Heterogeneous uncertainty matters! Evidence based on firms' cost management decisions

IF 5.6 2区 经济学 Q1 BUSINESS, FINANCE
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Abstract

The literature traditionally treats the uncertainty firms encounter as a whole, neglecting the inherent heterogeneity of uncertainty that prevails in the real world. To address this critical issue, this study employs natural language processing methods to decompose uncertainty into three distinct levels: firm-level, industry-level, and macro-level uncertainty. We then examine the impact of heterogeneous uncertainty on corporate decision-making from a cost management perspective. Our findings indicate that while uncertainty as a whole increases cost stickiness, this effect mainly stems from firm-level uncertainty rather than industry-level and macro-level uncertainty. These findings suggest that firms only respond to uncertainty when they perceive uncertainty at the firm level. Cross-sectional tests indicate that the impact of uncertainty on cost stickiness is more pronounced when firms face higher adjustment costs, lower financing constraints, and lower competitive pressures than otherwise. Additionally, uncertainty diminishes firms' cost elasticity, curtailing their production flexibility. Collectively, our results provide insights into comprehending the internal mechanisms of firms' decision-making in the face of uncertainty.
异质性不确定性很重要!基于企业成本管理决策的证据
传统文献将企业遇到的不确定性视为一个整体,忽视了现实世界中普遍存在的不确定性的内在异质性。为了解决这一关键问题,本研究采用自然语言处理方法,将不确定性分解为三个不同的层次:企业层次、行业层次和宏观层次的不确定性。然后,我们从成本管理的角度研究了异质性不确定性对企业决策的影响。我们的研究结果表明,虽然不确定性作为一个整体会增加成本粘性,但这种影响主要源于企业层面的不确定性,而非行业层面和宏观层面的不确定性。这些研究结果表明,企业只有在感知到企业层面的不确定性时才会对不确定性做出反应。横截面测试表明,当企业面临较高的调整成本、较低的融资约束和较小的竞争压力时,不确定性对成本粘性的影响比其他情况更明显。此外,不确定性会降低企业的成本弹性,限制其生产灵活性。总之,我们的研究结果为理解企业面对不确定性时的内部决策机制提供了启示。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
CiteScore
7.10
自引率
4.20%
发文量
85
审稿时长
100 days
期刊介绍: The intent of the editors is to consolidate Emerging Markets Review as the premier vehicle for publishing high impact empirical and theoretical studies in emerging markets finance. Preference will be given to comparative studies that take global and regional perspectives, detailed single country studies that address critical policy issues and have significant global and regional implications, and papers that address the interactions of national and international financial architecture. We especially welcome papers that take institutional as well as financial perspectives.
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