ESG 역량이 투자 수준에 따른 원가 하방경직성에 미치는 영향

[Purpose] This study examines the role of ESG in the asymmetric behavior of costs depending on the investment levels. ESG levels contribute to increase a corporate transparency and reduce costs stickiness associated with opportunistic behavior. The level of investment be seen as increasing cost asymmetry when there is aggressive overinvestment. Prior studies in this field, some studies have predicted that the investment level will strengthen the cost stickiness, which can be seen as an opportunistic and discretionary behavior. [Methodology] In this study, the ESG capabilities was measured using the rating announced by the Korea Corporate Governance Service, and the investment level was measured by facility investment related to capital expenditure and research and development investment, which is intangible asset expenditure. Cost asymmetry was analyzed using the method used in the study by Kim and Shin (2022), and the sample period was based on data provided by TS－2000 for 10 years from 2011 to 2020. [Findings] Analysis results showed that the level of investment strengthens the asymmetry of costs. And as a result of analyzing the ESG level by dividing it into overall, environment, social, and governance, the stickiness of costs at the investment strategy level was not confirmed in the group with a high ESG level. However, in groups with low ESG levels, the level of investment in production facilities was found to generally strengthen the cost asymmetry. [Implications] These results seem to be meaningful in that they identify some of the causes of previous research showing that the level of investment strengthens downward price rigidity. This study suggests that the level of ESG, which was not considered in previous research in this field, is an important factor that affects the asymmetric behavior of costs according to the investment level and the stickiness costs.