Asymmetric cost behavior and financial distress
研究了非对称成本行为（管理者故意保留闲置资源导致成本结构僵化）对财务困境的预测作用，发现两者正相关，且由管理者的乐观和过度自信驱动。
• We examine asymmetric cost behavior (ACB) as a predictor of financial distress. • The impact of ACB on financial distress is analyzed using the O-score, ZM-score, and Z-score. • ACB's relationship with financial distress is examined during the global financial crisis, showing consistent results. • Findings suggest that managerial optimism drives firms into financial distress. In this study, we investigate the effect of asymmetric cost behavior (ACB) on financial distress. In ACB, managers’ deliberate decision to retain idle resources creates an inflexible cost structure, which leads to financial distress. Using a sample of 107,021 firm-year observations from 12,850 U.S. listed non-financial firms over the period from 1987 to 2020, our findings reveal a positive relationship between ACB and financial distress. This relationship is driven by managerial optimism and overconfidence, as theorized in behavioral finance and the management optimism hypothesis. These results contribute to the growing understanding of how cognitive biases impact corporate financial decisions, particularly in firms facing financial distress, and underscore the importance of effective cost management in reducing the risks associated with ACB.