Research On The Impact Of Cost Stickiness On Financial Pressure From The Perspective Of Life Cycle

The number of Chinese enterprises is increasing,but most enterprises are facing the dilemma of short survival time and low quality of life.If enterprises want to achieve long-term and sustainable development,attaching importance to internal cost control and improving management efficiency are necessary.In 2003,Anderson and others discovered that cost is sticky for the first time which has played a certain role in promoting the development of cost accounting and even management accounting.Then,the existence of stickiness in different industries and different cost classifications has also been confirmed by many domestic scholars.Compared with other industries,the manufacturing industry has the characteristics of focused investment scope,high degree of technical specialization and complex production process.High adjustment costs further increase the possibility of cost stickiness.There are many cyclical phenomena in the market.Enterprises may also have different cost strategies and financial pressure due to the differentiated industry background,even in the same enterprise life cycle.Therefore,bringing the industry life cycle and enterprise life cycle into the research at the same time is more conducive to explore the impact of cost stickiness on financial pressure.Based on this,the research subdivides the manufacturing industry according to the industry classification of the Securities Supervision Commission in 2012.For industry scale and the availability of data,12 sub sectors of manufacturing industry are finally selected as the research samples to test the existence of cost stickiness.It is reasonable to take the life cycle as the starting point to study how the effects of cost stickiness on financial pressure are different when enterprises are in different industry life cycles and different enterprise life cycles.The results are as follows:(1)There is cost stickiness in industries above the scale of manufacturing industry as a whole.(2)The cost stickiness of industries above the scale of manufacturing industry will aggravate the financial pressure,which is significantly positively correlated.(3)Cost stickiness has a positive association with financial pressure in growing and mature industries.During the recession,the cost stickiness of the industry has no significant impact on the financial pressure.(4)Cost stickiness is positively correlated with financial pressure in growth,maturity and decline of enterprises.The cost stickiness of enterprises in recession has a higher impact on financial pressure.With the results above,corresponding suggestions can be put forward in order to help enterprises formulate reasonable cost management strategies,control the cost stickiness level and alleviate the financial pressure.