Research On The Influence Of Managerial Background Characteristics On Cost Stickiness

With the ever-changing economic situation, China has been from the time of low cost to the time of high cost, and for the manufacturing powerhouse like China, the cost has almost been the lifeblood of enterprises, so it is very important for an enterprise to control the costs if it wants to get profits and survive in this environment. Before to control the costs, we should make clear that what the factor and how it affects the cost. In the traditional cost behavior theory, it considers that the costs can be divided into fixed cost, variable cost and mixed cost. And it also considers that the total costs maintained the basic linear relationship with the volume of business. The formation of this viewpoint is built in an ideal state, without considering the impact of the corporate management and other factors. Under the study of the large numbers of scholar in recent years, it is found that the cost is sticky, and the influencing factors are variable.The Cost Stickiness refers to the proportion that the enterprise’s costs reduced while sales declined, and is less than cost increased while sales raised.thus formed by the cost of sales along with the increase and decrease amplitude asymmetry. At present, the domestic and overseas scholars have been accepted the concept that the cost is stickiness by the basis of empirical research. And they also think that there is some difference between the different countries. For its origin, the main theories interpret it are contract concept, efficiency concept and the concept of agent. The concept of agent is the most widely accepted, but for the influencing factor, each scholar has its own study. The scholars in our country have makes empirical study on the economic environment, industry differences, regional differences, impact angle motivation of earnings management and corporate governance structure such as the structure of the board of directors, actual controllers and managers supervise. Although it has carried on the research on the corporate governance level, the manager’s own characteristics has not been a deep research and analysis, In this paper, it argues that the managers as the main part of the corporate governance structure, they hold the final decision of the company, plays an important role in the survival and development of the company, its behavior will have a certain impact on the enterprise’s Cost Stickiness. In addition, by the difference between the state-owned enterprises and the non state-owned enterprises, this paper will divide the manufacture into state-owned enterprises and the non state-owned enterprises to consider. Above of all, as a kind of thought, this paper attempts to research on the relationship between the managerial background characteristics and the cost stickiness by using standardized research and empirical research, mainly through the study of manager’s gender, age, degree and tenure under the different actual controller.This paper is divided into five parties:the first part is the introduction, mainly introduced the background of the research and the significance of this paper, and summarized the study from the domestics and overseas about the characteristics and cost stickiness. The second part is about some concepts of cost stickiness and the basis theory. The third part is about some description of the cost stickiness and the analysis of the mechanism of action. The forth part is the result of the study. It analysis the cost stickiness under the different actual controller how does the management characteristics affects through the selection of China’s manufacturing industry listing Corporation2009-2011data. The empirical result shows that:the cost stickiness in non state-owned enterprises is obvious. And the gender, age and tenure are negatively with the cost stickiness in state-owned enterprises. But the degree of the management has no obvious with the cost stickiness. The fifth part is the conclusion of the paper, and then put forward policy recommendations and research prospects on this basis.The innovation of this paper lies in:The first is approach innovation. Although domestic and oversea scholars have research the cost stickiness of existence, economic environment, industry difference, corporate governance structure, there is no in-depth analysis on the factors of the managerial background characteristics. Therefore, there are some new ideas for research perspective of this paper.The second is sample innovation. This paper selects the annual financial data of2009-2011listing Corporation to analyze. And add the gender, age, degree and tenure to the log-linear models to analysis the relationship between management background characteristics and cost stickiness, strengthens the empirical analysis’ convincing and credibility.