Research On Cost Stickiness Of Forestry Listed Companies

In recent years,the scale of China’s forestry industry has been expanding and its output value has been increasing.China’s forestry industry has entered a new stage of promoting modernization,but the high cost of forestry enterprises has also become one of the significant restrictions for the development of forestry industry.Traditional cost theory believes that sales volume and cost are strictly linear,that is,revenue increases or decreases by the same amount,while cost increases or decreases by the same amount.Anderson discovered the asymmetric relation between sales volume and cost in 2003 and put forward the concept of cost stickiness.This paper makes the research on whether there is cost stickiness in forestry listed companies and its influencing factors,which plays an important role in improving the cost management of forestry enterprises and enhancing the efficiency of resource utilization.Through normative research and empirical research methods,this paper studies the cost stickiness of forestry listed companies.Firstly,by consulting the literature related to cost stickiness,the author understands the main achievements of cost stickiness research in recent years and the reasons for the formation of cost stickiness.Secondly,taking the agency theory,incomplete contract theory,manager’s optimistic expectation and efficiency theory as the theoretical basis,this paper makes a theoretical analysis on whether there is cost stickiness in forestry listed companies,and analyzes the influencing factors of cost stickiness of forestry listed companies from two aspects,both internal and external.Thirdly,this paper selects 283 sample data of 35 forestry listed companies from 2009 to 2017,which adopts Anderson(2003)for reference to carry on the empirical analysis to the sample data.The research results are as follows: China’s forestry listed companies have cost stickiness;Taking the median of the non-current assets density,asset-liability ratio and the median of equity concentration as the criteria to divide the forestry listed companies.This paper finds that the more non-current assets intensity and the higher the asset-liability ratio of forestry listed companies,the greater the cost stickiness;the higher the concentration degree of forestry listed companies,the less cost stickiness;When the growth rate of output value of forestry industry exceeds or closes to 20%,that is,in the period of external economic environment prosperity,the cost stickiness of forestry listed companies is very high;Forestry industry output value growth is low,especially well below 20%,the cost stickiness is low.Moreover,this paper also analyzes the cost stickiness of forestry listed companies from two angles of business scope and forestry subdivision industry.From the point of view of business scope,the cost stickiness of diversified forestry listed companies is greater than that of forestry listed companies with specialized management.From the point of view of forestry subdivision industry,this paper divides forestry listed companies into papermaking industry and other industries.The results express that the cost stickiness of papermaking industry is higher than the cost stickiness of other industries.According to the above research results,in order to strengthen the cost management of listed forestry companies and reduce the cost stickiness,this paper puts forward that forestry listed companies should improve their internal governance system,reasonably allocate the proportion of non-current assets,expand financing channels and actively introduce institutional investors.The Government should be committed to building a sound product market,capital market,manager market;Diversified forestry listed companies can improve the effectiveness of investment through the related diversified way of "Internet plus forest products" and so on.Papermaking listed companies should take into account social and economic benefits.Papermaking listed companies should reduce costs and achieve cleaner production through technology and raw material innovation.The innovation of this paper is mainly reflected in the analysis of the cost stickiness of forestry listed companies and its influencing factors.It is found that non-current asset concentration,asset-liability ratio,ownership concentration and external economic environment will all affect the cost stickiness of forestry listed companies.When studying the relationship between external economic environment and Cost Stickiness of forestry listed companies,this paper chooses the growth rate of gross domestic product of forestry industry,which is more closely related to forestry listed companies,to show the change of external economic environment.In addition,this paper also makes a comparative study of the cost stickiness of forestry listed companies from two angles of business scope and the subdivision of the forestry industry to further understand the cost stickiness phenomenon of forestry listed companies.It is hoped that the research of the paper will offer the reference for enhancing the scientific cost management of forestry listed companies.