Research On The Impact Of Cost Stickiness On Enterprise Risk

On October 27,2014,the Ministry of Finance issued the Guidance for Promoting the Development of Management Accounting System,which emphasized the importance of management accounting research.In particular,the study of the cost behavior of the enterprise,that is,the interdependence between the cost and the business volume of the enterprise,is an important part of the study of management accounting.Different from the traditional constitutive theory of linear assumption,the cost stickiness theory holds that there is an asymmetrical dependency between the amount of cost and the volume of business.Existing literature mainly studies the influencing factors of cost stickiness,but seldom discusses the economic consequences of cost stickiness.By studying the relationship between cost stickiness and enterprise risk,which is one of the economic consequences,it can help enterprises to understand their own behavior,so as to better carry out cost management.While helping enterprises understand the impact of cost stickiness on enterprise risk mechanism,the factor driving the relationship between them is clearly defined,so as to find an effective method to control enterprise risk.Based on the data of Chinese A-share non-financial listed companies from 2005 to2020,this thesis briefly analyzes the industry distribution characteristics of cost stickiness index,and then studies the impact of cost stickiness on enterprise risk.After a series of robustness tests,this thesis studies the influence mechanism of cost stickiness on enterprise risk from the path of absorbed slack.Further,from the perspective of equity incentive,this thesis analyzes the regulatory role of this factor in the path of "cost stickiness-absorbed slack-enterprise risk".Finally,based on the perspective of the type II agency problem,this thesis uses regression discontinuity design to study whether the veto power of major shareholders is the factor driving the impact of cost stickiness on enterprise risk,and carries out a heterogeneity analysis based on the property right nature.The results show that:(1)Cost stickiness is common among Chinese listed enterprises,and there is industry heterogeneity in this index.(2)Cost stickiness is positively correlated with enterprise risk.Among them,absorbed slack has a mediating effect on the correlation between cost stickiness and enterprise risk.Equity incentive has a moderating effect on the mediating effect of absorbed slack in the relationship between cost stickiness and enterprise risk.(3)Based on the perspective of the type II agency problem,taking the veto power of major shareholders on special matters when their shareholding ratio reaches 34% as the proxy variable,it is found that the veto power of major shareholders can drive the positive correlation between cost stickiness and enterprise risk,and this relationship mainly occurs in private enterprises.