A Study On The Cost Stickiness Of State - Owned And Private Listed Companies

Experts and scholars in the research of the model of cost behavior analysis,found that the existence of cost and business volume’s asymmetric changing phenomenon, and in further empirical study to verify the existence of asymmetric change, which is defined as cost stickiness. The theory of cost stickiness include contract theory, efficiency theory, opportunism theory and prospect theory, etc.,subjective and objective factors that have impact on the degree of cost stickiness,including owners, managers, macroeconomic environment, capital structure, etc., each factor’s influence on the degree of cost stickiness is not isolated, but the effect of the combination.This paper is study of the cost stickiness of state-owned and private listed companies in our country, study the formation cause of cost stickiness on the base of contract theory, efficiency theory, opportunism theory and prospect theory, propose the objective and subjective factors which affect the degree of cost stickiness, and explain the subjective and objective factors impact on the state-owned and private listed companies. To determine the research variables of statistical analysis for the operating cost, operating income and the level of executive compensation, with Wind database to the main database, GTA database as a supplement, select 1312 Chinese listed companies in Shanghai and Shenzhen Stock Exchange from 2005 to 2014 as the research sample, sift the sample company, eliminating the listed companies which listed in small and medium-sized board and GEM, ST listed companies, the listed companies which lack of the observation data or have other negative data, eventually form a sample of 222 listed companies, including 136 state-owned listed companies and 86 private listed companies, 6660 observation data. In this paper, by use of excel software, through the method of sample analysis and comparative analysis, analyze the difference between state-owned and private companies’ degree of cost stickiness.It is concluded that the level of cost stickiness and the level of executive compensation having negatively correlated relationship when the level of executive compensation is up of 10%, but on the influence of the level of executive compensation, private listed companies’ degree of cost stickiness have more extent of fluctuation, and therefore conclude that the level of executive compensation impact greater on private listed companies’ cost stickiness. In this paper, put forward some suggestions including reduce cost stickiness and improve the governance structure for state-owned and private listed companies’ core competitiveness.