Research On The Effects Of Entrepreneurs Social Capital Over Cost-stickiness

Since the existence of Cost Stickiness was found, many scholars have proved the existence of this phenomenon is universal. And cost change is asymmetric will affect the corporate performance. The present research is mainly focused on the existence of Cost Stickiness, state and industry differences and the single factor analysis. Social Capital, which can influence the enterprise profit, innovation ability, reputation, business risk and so on, is more and more concerned.so whether there is a relationship between the Entrepreneur Social Capital and Cost Stickiness. Therefore this paper select Manufacturing industry Corporation listed in Shanghai and Shenzhen and individually analysis the effect on those companies’ Cost Stickiness by entrepreneur incentive degree, supervision, ability and characteristics. The conclusions are as follows:(1) Cost Stickiness at present still evidently exists in manufacturing industry Corporation listed in Shanghai and Shenzhen.(2) The entrepreneur social capital can affect the cost stickiness, but the result is complicated. Entrepreneurs inspired degree and the Cost Stickiness is negatively related. Faced with reduced income, increase the entrepreneur reward and promotion incentives to entrepreneurs, let entrepreneurs use more social capital, which will reduce more spending and lower the level of cost stickiness. Ownership concentration has positive relation with Cost Stickiness. Highly concentrated ownership restrict that entrepreneurs use their social capital, which cause a downward cost change slowly and raise the level of cost stickiness. The proportion of independent directors has unobvious relation with Cost Stickiness. Probably because of at present the independent directors’ Invalid supervision, Entrepreneurs does not use social capital for contributing to the company. Entrepreneur education level and cost stickiness is negative correlation. To improve the level of entrepreneurial education can accumulate and use More resources in the social network, which can help corporation minimize the cost and reduce cost stickiness level.