Abstract
The objective of this study is to access asymmetric cost behaviour in Pakistan, an emerging economy. This study also accesses the
possible impact of board committees’ characteristics on the nature and extent of asymmetric cost behaviour. The study is based on
three multiple regression models. The study brings into play panel data fixed model to study the behaviour of Cost of Goods Sold
(COGS) and the influence of board committees’ characteristics and other control variables on a sample of 86 listed companies of the
Pakistan Stock Exchange from 2014–2018. The study affirms COGS asymmetric behavior. The findings of the study contradict the
traditional cost model assumption that costs behave in a linear fashion. Moreover, firm-year observations with average number of
members in committee overlapped members in remuneration and audit committee board compensation exhibit cost asymmetry.
However, higher economic growth and institutional ownership exhibit lower cost stickiness. This study accesses the association
among asymmetric cost behaviour and corporate governance from an emerging econom
Owais Shafique, Hussnain Ali. (2020) Impact of Overlapping Membership on Audit and Compensation Committee on Cost Behaviour: Evidence from Pakistan, Paradigms , Vol 14, Issue 1.
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