...Martin Holzhacker; Ranjani Krishnan; Matthias D. Mahlendorf ABSTRACT This paper extends prior literature on cost behavior by providing insights into how firms achieve changes to cost structure in response to two important risk drivers, i.e., demand uncertainty and financial risk. Using theory from...

...Rajiv D. Banker; Dmitri Byzalov; Jose M. Plehn-Dujowich ABSTRACT We investigate analytically and empirically the relationship between demand uncertainty and cost behavior. We argue that with more uncertain demand, unusually high realizations of demand become more likely. Accordingly, firms...