Monetary Policy, Financing Constraints And Cost Stickiness

Traditional cost and management theory believes that the change in cost varies with the change in business volume,and the cost changes with the increase and decrease of business volume.However,in 2003,the famous American scholar Mark C.Anderson,Rajiv D.Banker and Surya N.Janakiraman(ABJ)published an article entitled "Are Sailing,General,and Advanced Costs" at the Journal of Action Research? In this article,they observed the relationship between sales costs and management costs and income.For the first time,they proposed the concept of "viscosity" and used empirical methods to prove that there is a phenomenon of cost viscosity in listed companies in the United States.Cost stickiness is a description of the cost behavior.Through research,it is found that the change in cost and the change in business volume are asymmetric.As the increase of business volume,the marginal increase in cost is greater than the marginal decrease in cost when the business volume is equal.The existence of financing constraints makes the enterprise receive the influence of internal capital and external capital.The investment behavior of enterprises with less financing constraints depends more on external capital than on the internal capital of the enterprise.When considering the financing constraints of the real enterprise,the financing constraints will eventually weaken the cost viscosity of the enterprise by directly affecting the cost of the enterprise's upward adjustment of promised resources when the business volume rises,and indirectly affecting the excess resources retained by the enterprise when the business volume falls.Enterprises are all living in a certain macroeconomic environment,and changes in the Hongguan economic environment will inevitably prompt enterprises to make corresponding changes to cope with them,and monetary policy,as an important means of macroeconomic regulation,will inevitably affect decisions at the micro level of enterprises.And the impact of tightening monetary policy on corporate behavior is not equal,but will be affected by the company's own situation,especially the financing constraints it faces.For companies with high degree of financing constraints,they are less able to adjust and more sensitive to changes in monetary policy.Under tight monetary policy,management is more pessimistic about future expectations and is more likely to be interfered with by banks 'shrinking investments,so that companies' costs are less viscous.For companies with low degree of financing constraints,due to the tilt of credit policies,the financing environments lower degree of deterioration,banks 'intervention is smaller,and the company's cost stickiness changes are correspondingly smaller.Based on the relevant theoretical foundation,this paper explores the influence of monetary policy on the cost stickiness of enterprises through the combination of regulation and empirical analysis,aiming at the shortcomings of the existing research which ignores the cost adjustment.This study uses asset liability ratio,enterprise size,KZ index,SA index as the index to measure financing constraints,and then removes the robustness test in 2004 and 2008.With reference to studies by Raopingui and Jiangguohua 2006,2007,2010,2011,2012,and 2013 are defined as the year of monetary policy tightening,and other years within the sample period are defined as the year of monetary policy easing.Based on the research method of Anderson et al(2003),this paper takes the A-share manufacturing company listed in Shanghai and Shenzhen from2003 to 2016 as a research sample.Through the research,it is found that:(1)The operating costs of listed companies in China have viscous behavior;(2)The stronger the financing constraints faced by the enterprise,the less viscous the cost of the enterprise;(3)In companies with higher levels of financing constraints,tighter monetary policy has a greater degree of weakening of corporate costs;(4)Monetary tightening can promote the mitigation of cost stickiness by financing constraints in non-state enterprises.In state-owned enterprises,this promotion is not significant.