Management Earning Motivation,Internal Control And Cost Stickiness

A phenomenon differs from the cognitive regularity exists generally in the listed company. Contemporary studies on cost behaviour find that costs increase more with salse increases than they decrease in response to equivalent salse decreases. This sticky cost behaviour contradicts the traditional model. We call this "cost stickiness", which was formally proposed by Anderson (2003) and caused widespread concern of theorists and practitioners.Existing cost stickiness research mainly focused on the agent cost stickiness, basic characteristics and economic consequences analysis, the depth and breadth of research still needs further development. Expenses not only affected by operating conditions, but also influenced by management decision-making. The causes of cost sticky boils down to is the agency problem, cost adjustment and management anticipation. Internal control, as enterprise internal governance mechanism, plays an important role in the company’s operating decision-making and risk prevention by easing the problem of agency. One of the objectives of internal control is to improve the company’s operational efficiency and effectiveness, and in recent years enterprise internal control construction has attracted more and more attention in laws and regulations and supervision of the implementation.Using a sample of Shanghai and Shenzhen stock market in2009-2009A-share listed companies, and based on the existing cost viscosity model, the paper tests the relationship between internal control and cost stickiness, and the difference between cost stickiness performance and inhibition from internal control to cost stickiness under the win motivation. Results show that the internal control can alleviate cost stickiness. When companies are facing to avoid losses motivation, cost stickiness will decline even to reversal, on the other hand, when the company has the motivation to avoid losses, the internal control of cost of viscous relief is not significant, which can make management under great pressure.Expanding earnings manipulation from motivation to form, this paper further researches the how would real earning management effect on cost stickiness.Result shows that Real earnings management is positively correlated with cost stickiness, Management of real earnings management decision seriously affected by self-interest motivation.Based on the above research conclusion, the article offers policy recommendations such as to establish and improve internal control system and its disclosure, strengthen management, strengthen the management of external audit on earnings manipulation and so on.