Study On The Effect Of Government Subsidy On The Cost Stickiness Of Enterprises

Government subsidy is a tool of government macro-controlling policy which supplements the funds for the enterprise production and operation activities,changes the enterprise production and operation behavior,and will have the corresponding effcet on the enterprise operating income and operating expenses.Based on the realistic background of government subsidy,government subsidy and cost stickiness of enterprise are brought into the research framework,and the mechanism of the influence of government subsidy on enterprise cost stickiness is studied,which is of great significance for the government to optimize subsidy policy and enterprise cost control.Firstly,based on the theory of government intervention,the signal transmission and contract,the government intervention mechanism of enterprise production is analyzed,the mechanism of government subsidy signal transmission is analyzed,the mechanism of forming cost stickiness of government subsidy is analyzed.Based on the Chinese government subsidy system,internal control system and financial system,this paper analyzes the Government subsidies in the production and operation of enterprises,and the effect of the financial system on enterprise cost accounting.Secondly,from the perspectives of normative and empirical based on the analysis of theory and institution,the listed companies from Shanghai and Shenzhen A-share manufacturing enterprises in 2012-2017 is selected,this paper analyzes the effect of government subsidies on enterprise cost stickiness,based on institutional environment and enterprise’s characteristics,this effect is further explored.The results show that:(1)there is the phenomenon of cost stickiness in enterprises,which is further strengthened by government subsidy.(2)compared with non-overcapacity enterprises,the intensity of cost stickiness of government subsidies on overcapacity enterprises is greater.Compared with enterprises in regions of high degree of marketization,enterprises in regions of low degree of marketization have a greater stickiness of government subsidies.Compared with non-state-owned enterprises,the cost stickiness of government subsidy strengthening state-owned enterprises is greater.(3)government subsidy strengthens the cost stickiness of internal control weak enterprise,does not strengthens the cost stickiness of internal control strong enterprise;Government subsidy strengthens the cost stickiness of overconfident management enterprise,but does not strengthens the cost stickiness of non-overconfidence management enterprise;The government subsidy strengthens the cost stickiness of low-level financing constraint enterprises,but does not strengthens the cost stickiness of high-level financing constraint enterprises.Finally,on the basis of the above research conclusions,in order to improve the effect of government subsidy policy,and effectively control costs the paper puts forward to improve standardizing government subsidy behavior and improving the mechanism of precise policy;improve enterprise internal governance and establish effective incentive mechanism;improve the understanding of the law of cost,strengthen the level of cost management;improve the level of information disclosure and create a fair competition environment.The thesis incorporates government subsidies and cost stickiness into the same research framework,discusses the influence of government subsidies on enterprise cost stickiness,expands the research boundary of cost stickiness,supplements the literature of cost behavior hypothesis,enriches contract theory and government intervention theory to a certain extent,and provides a basis for improving government subsidy policies.