The Research Of Reducing Business Costs Stickiness By Corporates Governancing

As the core content of production and operation management in enterprises, cost management gets more and more attention of people. The traditional behavior analysis of cost assumes that the cost function model is y= a+bx. In this model y represents the total cost of the enterprise, x represents the sales volume, b is the variable cost per unit. After the derivation, we get dy/dx= b. Thus we obtain a very important and classic conclusion in the traditional behavior theory of the cost:the costs and sales volume of the enterprise completely satisfy the direct function relationship. That is to say, b is a constant number and it is independent of the changing direction of sales volume. Until today, it is what we learn in the textbooks.However, classic is necessarily true? C. Anderson* Rajiv d. Banker and Suryan Janakiramanet cover turned this classic assumption after some related research. They found that the cost ranges differently in response to the different changing direction of the sales volume. And they call this phenomenon as "sticky" cost. After that, the scholars domestic and external studied the existence, causes, characteristics and influencing factors of the cost stickiness. This paper argues that, it is full of practical significance that deeply analyzing the influence factors in the enterprise that managers can control.In this paper, we aim at the reduction of cost stickiness. On the basis of predecessors’ research, this paper divides the influencing factors of cost stickiness in enterprises into objective and subjective factors. We are engage in building a system of factors influencing the cost viscosity in the enterprise. Objective factors include two aspects:internal and external factors. Subjective factors are managers’factors, including the ability of managers, managers’ expectation in the future, and their self-interest. This article does not insist that the lower lever of the cost stickiness, the better. On the contrary, sometimes the moderate lever of cost stickiness is the evidence of the efficiency. However, we certainly need to curb the cost viscosity that emerges because of managers’self-interest. Then, how to reduce the cost stickiness in the corporate? The generating of principal-agent relationship triggers the agency problem, and the managers’self-interest behavior is one of them. Corporate governance can effectively alleviate the problem of agency in the enterprises. Therefore, we insist that corporate governance can reduce the lever of cost stickiness by inhibiting the manager’s self-interest motivation. Next, this article selects 790 manufacturing companies which are listed in securities exchange in Shanghai and Shenzhen in 2010-2012, and gets 2370study samples. This paper proves that the self-interest motivation of managers can truly influence the cost viscosity of the enterprise by using the method of empirical regression. What’s more, we introduce the corporate governance variable, and examine the effective corporate governance factors can reduce the cost stickiness. Finally, the article put forward some suggestions of improving corporate governance mechanism. We are devoted to making contributions of reducing the lever of cost stickiness in Chinese listed manufacturing companies.