The thesis of Kristina Reimer provides a comprehensive analysis of asymmetric cost behavior
(also known as cost stickiness) by discussing its origin and development in the theoretical and
empirical research from the 1920s of the past century up until today. Further using an
empirical approach she investigates the implications of asymmetric cost behavior for credit
and financial risk of a firm. In addition she provides an introduction into credit risk
fundamentals by focusing on credit default swaps. Thereby she analyses the development of
credit default swap market as well as the components of credit spreads. Finally she provides
several suggestions for future research.
