물 위험과 원가의 하방경직성의 관계

This study investigates the relationship between corporate water risk and the stickiness of selling and administrative (SG&A) expenses. The sample comprises 337 firm-year observations from 116 non-financial firms listed on the KOSPI and KOSDAQ markets with December fiscal year-ends that disclosed sustainability reports in 2022. Using a cost stickiness model, we analyze the cost behavior of firms with high water-use intensity relative to sales. We employ regression analysis to test whether exposure to water risk leads to asymmetric SG&A cost behavior. Among high water-use firms, we do not find consistent evidence of either cost stickiness or cost anti-stickiness in SG&A. Additionally, when separating firms based on year-over-year changes in fixed assets, only those with increasing fixed assets exhibit downward SG&A cost flexibility (i.e., anti-stickiness) under conditions of water risk. Taken together, these results suggest that firms with both high water-use intensity and a growing need for process improvement—as indicated by increasing fixed assets—tend to reduce SG&A expenses more flexibly in response to sales declines, and reallocate resources toward investments addressing water-related operational challenges.