Management Power?Media Supervision Andcost Stickiness

Since the cost is produced in the operating process of the business,and is closely related with the consumption and configuration of resource,so the cost can be managed.Due to the subjective and objective reasons,the phenomenon of "cost stickiness" occurs in enterprises:the business volume increases and decreasesthe same magnitude,but the cost doesn't increase and decrease the same magnitude.On the one hand,the study of this asymmetry can establish a bridge between themanagement accounting and financial accounting,and break the understanding that the cost management is a "black box".On the other hand,the existence of cost stickiness indicates that the resource allocation of enterprise is not in the optimal condition.Excessive cost stickiness affects the allocation of resources and operational efficiency of enterprises.Therefore,the study of the cost stickiness has important theoretical and practical significance.Although there are different opinions on the causes of cost stickiness both at home and abroad,theyare concluded into three sides:the concept of contract,the concept of efficiency and the agency problem,andthe agency problemholds the main position.Therefore,this article is writed from the view ofthe agency problem,and the research objectsare the data of Chinese manufacturing listed companies from 2010 to 2016.Thenit establishessuitable models to study the difference of the degree of cost stickiness,the impact of management power on the cost stickiness and whether the media has a regulatory role.The empirical results are as follows:(1)The problem of cost stickiness exists in the listed manufacturing companies in China,and the stickiness of management cost is stronger than that of sales cost.However,in the nature of different property rights,the stickiness of sales&management costs and management costs of state-owned enterprises are higher than that of private-owned enterprises,and the stickiness of their sales costs are not sticky.(2)There is a significant positive correlation between management power and the cost stickiness in the whole sample or in the sample of state-owned enterprises.However,in private enterprises,management power has no significant effect on the stickiness of sales expenses and the stickiness of management expenses,but there is a significant negative correlation between management power and the stickiness of sales&management costs.(3)In the whole sample or in the sample of state-owned enterprises,media supervision can weaken the positive correlation between management power and cost stickiness,that is to say:under the weakersupervision of media,there is a significant positive correlation between management power and cost stickiness,however,under the strongersupervision of media,there is no significant relationship between managerial power and the stickiness of the other two costs,except for the positive correlation between managerial power and the stickiness of the management costs.In the samples of private enterprises,under the weaker supervision of media,there is no significant correlation between management power and cost stickiness,but under the strongersupervision of media,there is significant negative correlation between management power and cost stickiness.Based on the above conclusions,this paper puts forward the following suggestions:We should always pay attention to the level of resource allocation activities,the daily expenditures and the effectiveness,and avoid the management to meet private interests and bring potential business risks to the company and its shareholders.At the same time,we should more actively encourage and value the supervisory role of the media,make up the deficiencies of internal governance and enhance the value of enterprises.The innovations of this article are as follows:This paper studied the differencesof the stickinessof different costs,and studied the relationship between management power,media supervision and stickiness of different costs from the perspective of different property rights.At the same time,the management's power is measured by the principal component score method.