Study On The Questions About Cost "Stickiness" In Chinese Manufacturing Listed Companies

As the material foundation of national economy, manufacturing industry is not only the main industry of national economy, but also the backbone of national industrialization and modernization. The level of its development is the important symbol of national comprehensive economic strength, technological strength, national defense strength and international competitiveness, and it is also the guarantee of national security. China is a socialist country, which has a large population, and the relative shortage of resources. The importance of the manufacturing industry is extraordinary. For the manufacturing enterprises, cost management is an important content of the production and business activities. How to reduce the cost of manufacturing enterprises to improve their competitive ability in the market and maintain the survival has a very important significance. In the process of cost reduction, cost is usually can not adjust with the decline in business volume. The marginal reduction of the costs when the business volume decline is less than the marginal increase of the costs when the business volume rise, there is a cost stickiness. This phenomenon directly influences the level of cost management in enterprise, make the speed of market reaction in enterprise become slower. Cost stickiness is a obstacle of manufacturing industry in our country, and it is not conducive for enterprises to improve their competitiveness.Article starting from the present situation of Cost Stickiness in manufacturing listing Corporation, analyzes the reason and the influence factors. Conduct an empirical study on Cost Stickiness degree and the influencing factors in China manufacturing listing Corporation during2007-2011. The results showed that:①Manufacturing listing Corporation in china have greater cost stickiness;②The strategic choice of the enterprise will affect the Cost Stickiness in a certain extent;③The external macroeconomic environment has a large effect on the stickiness of cost, when the macroeconomic grow faster and the inflation rate is high, the manager will pay more attention to control the cost, thereby reducing the Cost Stickiness;④In a enterprise, high ownership concentration can enhance the efficiency of corporate governance, reduce the Cost Stickiness behavior. On the other hand, when the free cash flow is larger, self-interest behavior of the manager is more serious, the control of the cost will more weakly, so the cost stickiness is stronger. According to the above results, the article puts forward relevant policy suggestions for enterprises from three aspects:manufacturing enterprises strategic choice, optimize the external environment of manufacturing listing Corporation and strengthen the internal management of manufacturing listing Corporation. To help enterprises reduce the stickiness of cost, improve the level of cost management in enterprise, make the resources play the biggest effectiveness, enhance the competitiveness of enterprises. And to help the enterprises have a long-term, sustained, efficient development, so as to enhance the level of economic development in china.