The Study On The Influence Of The Agency Cost On Cost (Anti) Stickiness Of Listed Family Firms In China

The phenomenon of cost(anti)stickiness refers to the state in which the companies' cost and income appear to be asymmetrical.The agency cost is an important reason for this phenomenon.As an important component of China's economy,family firms have experienced slower development in recent years after decades of rapid development.The most prominent performance is that the compound net profit rate has decreased significantly and is much lower than other private firms while operating income continues to rise.Cost control has become an important issue.At the present stage,domestic scholars mostly consider private firms as a whole to study their cost(anti)stickiness,and do not examine the(anti)stickiness of family firms.Based on this,this article uses the 2012-2016 data of Chinese A-share listed family firms to test whether the family firms has the(anti)stickiness and whether the cost(anti)stickiness has industry characteristics and reversal characteristics.The overall sample was divided into a sample with cost stickiness and a sample with cost anti-stickiness.The effect of the agency cost between the owner and the non-family member manager and the agency cost between the owner and the family member manager was examined.The research shows that:(1)Overall,listed Chinese family firms exhibit cost stickiness.(2)From an individual point of view,51.3%of the sample has cost stickiness,and 48.7%has cost anti-stickiness.(3)Cost(anti)stickiness has industry characteristics.Mining industry,leasing and business services industry,water,environment and public facilities management industry,culture,sports and entertainment industry show anti-stickiness.Other industries show stickiness and comprehensive industry is the highest.(4)There is no reversal of cost(anti)stickiness.(5)For the sample with stickiness,the two agency costs are positively correlated with cost stickiness;For the sample with anti-stickiness,the anti-stickiness has positive correlation with the two agency costs.Therefore,the family firms with cost stickiness should be more cautious when hiring family members as managers and should increase the introduction of professional managers.The family firms can maintain a reasonable level of cash flow through debt financing.This is important for reducing corporate stickiness,increasing corporate profits,and achieving long-term development.