Research On Cost Stickiness And Its Influencing Factors Of Maanshan Iron & Steel Company Limited

The iron and steel industry is an important basic industry for China’s national economic construction.However,with the continuous deepening of supply-side reform and the implementation of the "double carbon" strategy,the iron and steel industry is facing more fierce market competition,and its cost management requirements are further improved.This requires enterprises to have a correct understanding of cost behavior and pay attention to cost stickiness.This paper takes Maanshan Iron & Steel Company Limited as a case study to measure its cost stickiness and discusses the influencing factors and control measures of cost stickiness.After combing the research literature on cost stickiness at home and abroad,this paper analyzes the cost stickiness of Maanshan Iron & Steel Company Limited by combining the adjustment cost theory,principal-agent theory and management expectation theory.Firstly,according to the financial data of Maanshan Iron & Steel Company Limited from 2006 to 2021,Weiss model is used to measure its cost stickiness.It is found that Maanshan Iron & Steel Company Limited has cost stickiness,and the cost stickiness in different years is different.Secondly,it analyzes the influencing factors of Maanshan Iron & Steel Company Limited’s cost stickiness,and finds that its cost stickiness is affected by several factors such as macroeconomic environment,adjustment cost,company operation and governance,agency problem,and management’s optimistic expectations.Specifically,when the macroeconomic environment is getting better,enterprises may show higher cost stickiness,otherwise enterprises will show lower cost stickiness;Higher capital intensity and human capital intensity will increase the cost stickiness of enterprises;Higher debt capital will strengthen the cost stickiness of enterprises,while perfect organizational structure,removal of excess capacity,establishment of good supplier relationship and enhancement of cooperative innovation will reduce their cost stickiness.Management’s salary growth and on-the-job consumption will increase its cost stickiness;The management’s optimism about the future development of the enterprise will increase the cost stickiness of the enterprise,and vice versa will reduce the cost stickiness of the enterprise.Finally,the main influencing factors for its cost stickiness control recommendations:(1)Improve the macroeconomic environment;(2)Reduce adjustment costs;(3)Optimize business operation and governance;(4)Reduce agency costs;(5)Improve the accuracy of management expectations.The research in this paper supplements the influencing factors of cost stickiness,expands the theoretical knowledge of cost stickiness,and provides decision-making basis and reference for cost management of iron and steel industry,so as to improve the scientificity of cost management and enhance the competitiveness of enterprises.