The New Accounting Standards, Earnings Management And Cost Stickiness Of Listed Companies

The social economic environment is changing over time, which prompted managers tomanage the cost actively. The management decision-making has a certain impact on the costbehavior, which is defined as cost stickiness using the concept of price stickiness in theeconomic. The studies on cost stickiness have opened up a new and important direction forempirical research on cost and management accounting, which established a bridge betweenmanagement accounting research and financial accounting research.This paper studied the effects of listed companies accrued earnings management behavioron cost stickiness, with the data of China’s capital market. Three different earnings managementbehaviors have been distinguished, including loss motivation, disclosing tiny profit motivationand big bath motivation. Empirical results that the effects of different adjustment mechanismearnings management motivation on cost stickiness supported the hypotheses. Upwardadjustment class earnings management motivations weakened costs sticky and downwardadjustment class earnings management motivations enhanced costs sticky. The implementationof the new accounting standards in China is a good opportunity to research. After analyzing thestandards of Impairment of Assets deeply, this paper examined the impact and the researchresults shows that the major impact of the new accounting standards on cost stickiness is thegeneral and administrative cost instead of selling expenses, confirming that the existence ofaccrued earnings management behavior and the impact on cost stickiness indirectly.