An Empirical Study On The Effect Of Cost And Expense Sticky On Energy Companies Performance

The American scholar Anderson et al.proposed the concept of cost sticky in 2003.It is believed that cost stickiness is a phenomenon in which the cost growth rate is faster than the cost reduction when the business volume increases or decreases by the same magnitude.Afterwards,most scholars are taking samples of manufacturing companies with small changes in factor prices as a sample to study whether the costs and expenses are sticky.Few scholars have studied the relationship between cost or expense sticky and corporate performance.The energy industry is an important basic industry of the national economy,and it is closely related to the development of the national economy.Today,when the energy price fluctuates dramatically,it is necessary to separately discuss the impact of the existence of the stickiness of energy enterprises on performance.This paper takes the sample of 33 energy listed companies in A-shares from 2008 to 2016 as a sample,based on principal-agent theory,transaction cost theory,and managers' expectation theory.It uses the ABJ model to verify the existence of sticky characteristics of energy companies' operating costs and sales management expenses.It also examines the impact of price factors on corporate cost stickiness and expense sticky characteristics.After using the Dan Weiss model to calculate the cost sticky and expense stickiness of energy companies,we apply the least squares method to the relationship between energy cost sticky or expense sticky of Chinese energy companies and corporate performance.The results of the study show that: Energy companies' operating costs and sales management costs are sticky,and cost stickiness is characterized by reversibility and polarity,but cost stickiness is only characterized by reversibility;For the energy industry,the factor price changes have little effect on the existence,reversibility,and polarity characteristics of the cost and expense stickiness,but the factor price changes have a greater impact on the cost and expense stickiness level;The cost stickiness of energy enterprises is negatively correlated with corporate performance,while the expense stickiness is positively correlated with enterprise performance.At the end of the article,the paper combines the empirical results with the characteristics of energy companies and proposes the following three targeted recommendations for reducing cost stickiness: For the government,it is necessary to continue to deepen reform of the energy market economic system,continue to promote the reform of energy-related state-owned enterprises,increase the vitality and competitiveness of the energy market,and reduce agency and agency costs;for the energy industry,it should actively promote supply-side reform and eliminate backward production capacity.To achieve an efficient industrial system and an intensive industrial layout,to reduce transaction costs while reducing the viscosity level;for energy companies,they should adjust management policies while simultaneously implementing management mechanism reforms to reduce cost stickiness from the root.