An Empirical Study On Cost Stickiness Influence Corporate Performance

Since the economic crisis of 2008,the traditional pattern of economic development has been threatened,It’s crucial for domestic corporations to transform and upgrade as well as adapt advanced method of cost control.However,managers may face cost stickiness during the daily operation and the investment.But the relationship of the cost stickiness and the corporate performance has been unknown.The article presume the divergence of the empirical results of the cost stickiness and the corporate performance roots in the nature of the cost stickiness.In using the sample of listed firms of Shanghai and Shenzhen Stock Exchange Market,the article distinguished the different nature of cost stickiness in perspective of investment and the cost control,and tested the relationship of corporate performance of different nature of cost stickiness.Our empirical results indicate that:1)Cost stickiness has significant negative effect on corporate performance;2)Cost stickiness which derived from cost control deficiency has severer negative effect on the corporate performance;3)Cost stickiness which derived from investment has less negtive significant on the corporate performance.Our research may have three contributions: Firstly,the article distinguished the cost stickiness of different nature for the first time,which depend;Secondly,the research has the practical significance for managers to control the cost and for investors to judge the mechanism of cost change.Third,the research has the implementation of the prior literature.