Research On The Influence Of Negative Media Reports On Cost Stickiness

The existence of cost stickiness means that it is difficult for enterprises to reduce costs and profit margins when business volume decreases.This may lead to low operating efficiency of enterprises,aggravate operating risks,and to a certain extent increase the operation of enterprises,industries and even the overall economy.risks of.Therefore,it is necessary to study the cost stickiness.The existing literature on cost stickiness mainly focuses on the research of influencing factors,including three aspects: adjustment cost,managerial optimistic expectations and managerial opportunism.In the research on the influencing factors of cost stickiness,there are more studies on internal governance factors,such as the nature of property rights,corporate attributes,board governance,and earnings management;there are fewer studies on external governance factors,including legal systems and media reports.In general,fee stickiness is still a hot research topic in the accounting field,and its mechanism and influencing factors are still worth exploring and exploring;especially external governance factors—how negative media reports affect fee stickiness,there is little research.Based on the perspective of negative media reports,this article takes China's A-share manufacturing listed companies from 2013 to 2018 as a sample to examine the impact of negative media reports on the stickiness of corporate expenses.The study found that:(1)Negative media reports can effectively suppress the cost stickiness of enterprises;(2)Mechanism test: negative media reports affect management self-interest behavior,which in turn affects cost stickiness,and management self-interest is the influence of negative media reports The mediating variable of cost stickiness;(3)Further research found that under certain other conditions,negative media reports inhibit cost stickiness more significantly in companies with poor information environments.The research conclusions of this article support the negative media reports on corporate governance effects.Management self-interest is the mechanism of action,and the information environment will also affect its inhibitory effects.Therefore,it is particularly important to pay attention to the stickiness of enterprises and to actively play the governance role of the media and information environment,which is of reference significance for the company to improve the business performance and value realization of the company.