Empirical Study Of Listed Companies In China About The Factors And Economic Consequences Of Cost Stickiness

To conduct daily business production and business activities, managers must put this costin order to obtain the corresponding revenue, this behavior is also a direct reflection of themanagers for business decision-making situation. So, as an important part of daily productionand management, cost control plays a crucial role. Understand cost behavior from theperspective of cost effective and complete implementation of the results of insight, thebusiness owners and the interests of investors and other stakeholders enterprise costmanagement can use this as a basis for business and investment decisions. In recent years,academic research as one of the hotspots of accounting, expenses by cost behavior viscositymodel is derived and reflects a characteristic of the state, namely the marginal cost marginalincrease when large decline in business volume increased traffic when reduce the amount. Thefinancial analyst is the capital market information users in a very professional group, theymake predictions for the company’s future earnings and risk through various channels tocollect information, to become a media information transfer between companies and investors,so the capital market surplus predict behavior sophistication and financial analysts areinextricably linked. Sticky issue because the cost has long been ignored, but it can not ignoreits importance, so this problem has attracted more and more attention of scholars, not just thecost of the causes sticky, influencing factors, especially the study of its economicconsequences. Based on the above the importance of research costs more and more viscousinternal managers and external investors.Firstly, the relevant literatures of the sort, based on the theoretical analysis, according toforeign scholars calculated the cost of a new tack, select2012-2013listed manufacturingcompanies of1341observations validate our manufacturing the existence of a listed companyexpenses viscous behavior, they were from the proxy issues and corporate governance point ofview, the use of empirical analysis test free cash flow, the structure, the impact of theownership structure of the Board of cost stickiness, and thus the cost of the economicconsequences of viscous empirical research the findings show that China’s manufacturinglisted company’s sales and administrative expenses in the overall presence of viscous; goodinternal governance of corporate cost structure can play a role in mitigation sticky; from theperspective of agency theory, the use of corporate governance Acting mitigation costs weaken sticky issue, and thus more clearly understand the agency problem, the cost of stickyrelationship among corporate governance. After the factors controlling the company’scharacteristics, earnings, environmental uncertainty, corporate expenses sticky degree, thelower the accuracy of analyst earnings estimates, the cost does increase the viscosity of thevolatility of the company’s future earnings.