%0 Journal Article %A Dezie L. Warganegara and Dewi Tamara %D 2014 %J International Journal of Economics and Management Engineering %B World Academy of Science, Engineering and Technology %I Open Science Index 95, 2014 %T The Impacts of Cost Stickiness on the Profitability of Indonesian Firms %U https://publications.waset.org/pdf/9999814 %V 95 %X The objectives of this study is to investigate the existence of the sticky cost behavior of firms listed in the Indonesia Stock Exchange (IDX) and to find evidence on the effects of sticky operating expenses (SG&A expenses) on profitability of firms. For the first objective, this study finds that the sticky cost behavior does exist. For the second objective, this study finds that the stickier the operating expenses the lesser future profitability of the firms. This study concludes that sticky cost affects negatively to the performance and, therefore, firms should include flexibility in designing the cost structure of their firms. %P 3621 - 3624