Why does more IT security staff mitigate cost stickiness?
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Having more IT security staff can mitigate cost stickiness due to the influence of institutional ownership. Institutional investors, who are more likely to monitor managers, demand lower cost stickiness to mitigate agency problems. This monitoring effect is stronger in firms where managers have more opportunities for empire building, leading to heavier monitoring by institutional investors to control costs. Additionally, the strategic choices made by management, such as optimism about future performance and the desire to mitigate information asymmetry, can lead to increased cost stickiness and a propensity to release management earnings forecasts. Therefore, by having more IT security staff to monitor and control costs, firms can reduce cost stickiness and improve overall cost management.
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| Papers (4) | Insight |
|---|---|
06 Mar 2018 | More IT security staff mitigates cost stickiness by reducing potential financial losses from security breaches, enhancing operational efficiency, and ensuring better protection of valuable intangible assets in knowledge-intensive firms. |
01 Mar 2017 3 Citations | More IT security staff mitigates cost stickiness by reducing the likelihood of earnings management motives impacting costs, leading to more accurate cost estimations and improved decision-making in enterprises. |
9 Citations | Not addressed in the paper. |
01 Jan 2023 | Not addressed in the paper. |
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