Testing cost stickiness in BIST information technology sector with panel data

One of the primary motivations of businesses is profit maximization. In establishing the balance between profit and loss and ensuring the continuation of operations, the concept of cost plays a crucial role. Cost is a significant factor both in managerial decision-making and in providing relevant information to stakeholders. In fact, cost emerges as one of the most fundamental concepts addressed by managers in the pursuit of a company's ultimate goal—profit maximization. The term "cost behavior" refers to how costs respond to changes in market conditions and managerial decisions. These behaviors may follow traditional patterns or exhibit asymmetrical characteristics. In the literature, asymmetrical cost behavior is commonly referred to as cost stickiness. More specifically, cost stickiness describes a deviation from traditional cost behavior in response to fluctuations in activity levels. Under traditional cost behavior, it is expected that costs increase with rising activity and decrease proportionally when activity declines. However, cost stickiness suggests that the cost response to increases in activity differs from the response to decreases. This phenomenon has been widely studied within the field of cost accounting, where researchers seek to identify the causes and magnitude of such stickiness. In this study, the financial statements of 19 companies listed in the Borsa Istanbul Information Technology Sector from 2014 to 2024 were analyzed on a quarterly basis. The data examined includes Sales Revenue, Cost of Goods Sold, General Administrative Expenses, and Fincancial Expenses. The ABJ model, which has been widely applied in prior research, was used as the analytical framework. Three separate models were established for the different cost components, and panel data analysis was conducted to evaluate the results. The findings reveal that, within the specified period and across the examined cost items, no evidence of cost stickiness was observed in the relevant sector.