The Impact Of Chinese Manufacturing Listed Company Cost Stickiness On Enterprise Growth

Manufacturing is the foundation of the national economy, it directly reflects the country’s productive forces, the development of manufacturing is very important. In view of the important position of manufacturing in our economy, domestic scholars pay more attention on the growth of manufacturing, but few scholars are concerned about the impact of cost stickiness on enterprise growth. A lot of domestic and overseas scholars have found that cost stickiness exists in the course of business in the manufacturing enterprises, cost increase more with activity increase than they decrease in response to equivalent activity decrease. Although cost stickiness may cause a decline of companies’ profit in the short term, but it doesn’t make a bad influence on the growth of companies definitely in the long term. Therefore, this paper researches the impact of costs stickiness on the enterprise growth.Firstly, this paper defines the related conceptions, reviews the studies about the cost stickiness and enterprise growth, and introduces the basement of relevant theories. Based on the analysis of the impact of cost stickiness on enterprise growth, proposes research hypothesis of this paper. In order to make a further study the exact relationship between cost stickiness and enterprise growth, this paper takes manufacturing listed company as samples, and chooses their data from 2007 to 2014 and regress. This paper also chooses the size of the companies and size of the managers as the factors, studies the impact of them on the relationship between cost stickiness and enterprise growth. On the basis of the above general studies, and then make the further study by separate the samples as different ownership types and different regions.The results of the paper indicate that:(1)Cost stickiness has a positive effect on enterprise growth. The effect exists both in state-owned and non-state-owned enterprises, but the effect is obvious in non-state –owned enterprises. The effect also exists in different regions, but the effect is obvious in central region companies;(2)Firm size will weaken the effects of cost stickiness on enterprise growth. This phenomenon exists both in state-owned and non-state-owned enterprises, but it is obvious in non-state-owned enterprises. In different regions, this phenomenon also exists, but it is obvious in eastern enterprises;(3)The size of manager team will also weaken the effects of cost stickiness on enterprise growth. But it doesn’t exist in state-owned enterprises and western enterprises.Finally, for the above-mentioned findings, this paper provide some relevant advice, point the limitations of this paper, and proposed possible research directions in the future.