An Empirical Study On Cost Stickiness Of Listed Manufacturing Companies In China

The traditional cost behavior theory holds that the cost and the business volume are completely linear. In recent years, and it has been found that the change in cost depends not only on the magnitude of the change in the volume of business but also on the direction of the change in the volume of the business, which reveal the existence of cost stickiness. The idea of cost stickiness not only challenges the theory of traditional accounting cost, but also opens up a new perspective for the study of corporate financial strategy from the view of cost habits. So far, at home and abroad for the cost stickiness of research results are less, which has not yet established a complete theoretical system, and there is still a certain degree of research space and research significance. At the same time, it is of great practical significance to study the cost stickiness problem in our country under the background of "cost reduction".Firstly, this paper combs the research results at home and abroad to find out the research points. Secondly, the characteristics of cost stickiness are briefly introduced,and the causes of cost stickiness are analyzed and the research hypotheses are put forward based on the related theories of contract theory, efficiency theory and agency theory. Thirdly, this paper takes the financial data of 714 manufacturing companies listed in Shanghai and Shanghai A shares as the samples from 2007 to 2015, and uses the LOG model to test the characteristics of the cost stickiness of China's listed manufacturing companies and the influence of various factors on cost stickiness.Finally, we combine the economic environment of our country and the actual situation of enterprise management, and put forward the corresponding policy recommendations to optimize the cost stickiness.In this paper, through the empirical analysis, the conclusions are as follows: Firstly,it shows that China's listed manufacturing companies still appears cost stickiness after eliminating the effects of inflation. Secondly, the level of cost stickiness becomes lower after a longer accounting period. Thirdly,after more decrease of revenue,the level of cost stickiness also drops. Next, high executive pay levels and ownership concentration reduce the cost stickiness. Finally, asset concentration, labor intensity and debt levels enhance the cost stickiness.Because the existence of cost stickiness is impossible to avoid, so we can only reduce the cost stickiness as much as possible. Through the optimization of the external environment and strengthen the internal management and other aspects to reduce the cost stickiness,so that the enterprise's resources to be better use to ensure that managers cost decision-making scientific and rational.