판매관리비의 비중이 주가폭락에 미치는 영향

SG&A costs ratio has two perspectives on firm’s value or performance. On the one hand, the SG&A costs ratio gives negative signal about future profitability. Traditionally, this ratio is perceived as the operating efficiency. Therefore, the increase of the SG&A costs ratio suggests the inefficiency or lack of ability of managers regarding control costs or operations. On the other hand, the SG&A costs ratio indicates the signal as future performance. Thus, this ratio is considered as important signal because the SG&A costs ratio is monitored by stakeholder for future operating. Overall, this ratio provides information asymmetry because of two conflicting perspectives on the SG&A costs to sales. Therefore, this paper empirically examines whether SG&A costs ratio is associated with the future stock price crash risk. Also, the relation between the SG&A costs ratio and stock price crash risk is likely to incrementally differ based on firm’s competitive environment. Using a large sample of 61,710 firm-year observations from 1991 to 2013, we find that the SG&A costs ratio is significantly negative associated with stock price crash risk. Also, we find that the association between the SG&A costs ratio and stock price crash risk is less pronounced for firms in less competitive industry. These findings are contrary to traditional evidence that SG&A costs ratio is a proxy for agency costs. Also, for firms with less competitive industry, the SG&