THE EFFECT OF WORKING CAPITAL MANAGEMENT ON COST STICKINESS: EVIDENCE FROM THE VIETNAMESE CONTEXT

Abstract

This study examines the impact of working capital management on cost stickiness among firms listed on the Vietnam stock exchange over the period 2014–2024. Utilizing a quantitative research design with a dataset comprising 650 firms, the study employs panel data regression techniques, including Ordinary Least Squares (OLS) and the Fixed Effects Model (FEM), and conducts model diagnostics using R software version 4.2.2. The findings indicate that the Net Trade Cycle (NTC) is the most statistically significant variable, suggesting that effective working capital management exerts a measurable influence on the degree of cost stickiness. These results contribute to the theoretical foundation of cost behavior analysis and provide a novel managerial perspective in the context of corporate financial management in emerging markets.