Analysis On The Factors Affecting The Cost Stickiness Of BC Group

Because of the cost of traditional state theory of the relationship between cost and trafficdescription is too idealistic, economists have proposed the concept of cost stickiness. Refers tothe increase or decrease in the cost of viscosity changes occur when the volume of business,resulting in reduced costs less than the increase in the proportion of the cost ratio is the costdifference between the two stickies.Based on the cost of state theory, contract theory, agency theory and the theory of specialtype of assets, combined with BC Group’s financial data, research the cost of the main factorsBC Group sticky. BC Group is an important rail transportation equipment manufacturingenterprises, through the data for its2009-2014analysis to get the factors affecting the cost of BCGroup viscous main level macroeconomic development, board structure, capital structure,capital-intensive businesses degrees. After the article refers to the number of models proposed byAnderson, on the Group’s cost stickiness factors BC testing. Because BC Group, a company withonly a sample of the data, you can not draw valid statistical results, so this article data sample of24selected rail transportation equipment manufacturing enterprises from2009to2014dataregression analysis and the results obtained are: BC Group industry cost stickiness does exist;the level of macro-economic development had no obvious effect on the cost of tack; the totalnumber of independent directors of the Board accounted for the greater proportion of the cost ofthe less viscous; the higher the debt ratio of the cost of the greater stickiness; the higher the costof capital intensity viscosity greater. Finally, based on earlier data analysis and regression testresults, to reduce the cost of viscous BC Group made seven recommendations: Foreignstrengthen macroeconomic regulation, strengthen external oversight enterprises; improve internalmanagement level, strengthening talent introduction and training, improve internal controlsystem, optimizing capital structure and improve the use of fixed assets.The sticky of cost is impossible to completely remove,I hope that through this research, canreduce costs for BC Group, and can help to improve their cost management.