An Empirical Study On Cost Stickiness Of Real Estate Companies Of China

In recent years,more and more empirical studies have found that when the income decline,the decrease of enterprise cost is obviously less than the increase of enterprise cost when the income rises.This asymmetrical phenomenon is"Cost Stickiness".The existence of Cost Stickiness makes enterprises unable to adjust the cost strategy in time and effectively,which reduces the operation efficiency of enterprises.At the same time,it will also affect the accuracy of corporate earnings forecasts,resulting in abnormal valuation and stock price fluctuations.At present,China's real estate enterprises are facing the dual adverse environment of medium-term policy supervision and the structural changes in the long-term market supply and demand relationship,and the future income is facing downward pressure.Therefore,to study the relationship between the cost and income of real estate enterprises,to distinguish the existence of the Cost Stickiness and to find the factors that affect the Cost Stickiness will help the real estate enterprises to formulate corresponding policies to improve the business efficiency of the enterprises and to cope with the changeable situation in the future.The academic circles generally agree that the"opportunism view"that the principal-agent problem has a great influence on the Cost Stickiness and the existence of improvement space,this paper,from the perspective of agency,empirically tests the direct influence of the agency problem on the Cost Stickiness and systematized its influence factors,and analyzes these factors through agency.The problem affects the mechanism of cost stickiness,and puts forward policy suggestions to improve the Cost Stickiness of enterprises.This paper first combed the existing research results and theoretical basis,introduced the concept of Cost Stickiness and the main research scope,and emphasized the important cause of the cost stickiness-the theory and research of the agency problem.Based on literature review and theoretical basis,this paper first defines the concept of this study at the beginning of the hypothesis,and defines two proxy cost measurement methods proposed by Li Shouxi^[37],the rate of management cost and the turnover rate of assets,which are defined as agency cost and agency efficiency respectively.The theoretical basis is that the majority of the literatures do not make a clear distinction between the two,and agency cost is still the proxy problem.On this basis,this paper demonstrates the stickiness of total business cost,operating cost and period cost,empirically tests the direct influence of agency problem on cost stickiness,and systematically combs the influence factors from the perspective of agency,and innovatively analyzes these factors through the agency problem.The mechanism of cost stickiness is raised,and the policy recommendations to improve the Cost Stickiness of enterprises are put forward.Finally,this paper uses the data of 112 listed companies in the real estate industry in-2016 in 2009.The empirical results show that:1)the Cost Stickiness of the real estate enterprises;2)the higher the agency cost,the lower the agency efficiency,the higher the Cost Stickiness;3)the improvement of the medium of equity and the reduction of the balance of equity.The increase in the dividend payment rate,the increase of the current debt rate,the rise of the managerial ownership,the increase of the industry growth and the reduction of the monopoly ratio can reduce the Cost Stickiness of the enterprises by affecting the agency cost or the agency efficiency.