Empirical Research Of The Cost Stickiness Behavior Based On Opportunism Incentives Of Mangers

Costs, as an important part of the day-to-day operating costs of enterprises, can be effectively managed and controlled by managers, which will affect the performance of the business to a large extent. Based on the importance that costs has to enterprise development, study on cost behavior is becoming more and more in academic circles. So far, the theory of cost stickiness behavior in the theory of cost behavior has not formed a coherent conclusion both at home and abroad. Therefore, it is necessary and urgent to do further research on cost stickiness behavior.Based on this, this paper analyzes the reasons of generating cost stickiness in the listed companies of China’s manufacturing industry from the perspective of managerial opportunism motivation, and puts forward reasonable suggestions to restrain the self-interest behavior of management from the angle of the main controller, thus promoting the enterprise cost stickiness to return to a reasonable level that is conducive to the development of enterprises, and further perfecting the daily expense management in the listed companies of China’s manufacturing industry,finally enhancing the company’s overall performance. The main research work is as follows:Firstly, the existing relevant literature is reviewed and combed systematically,and the basic characteristics, causes and influencing factors of cost stickiness and economic consequences brought by it are summarized. Secondly, the opportunism theory and corporate control theory are used to analyze the effect that opportunism motivation has on cost stickiness, and explore the factors that have influence on the relationship between the management and the cost stickiness opportunism motivation.Once more, through the analysis of empirical data of the listed companies of China’s manufacturing industry, the empirical analysis method is taken to make an empirical test on the following problems: the effect that opportunism motivation has on cost stickiness behavior in the listed companies of China’s manufacturing industry; the influence that behavioral characteristic of corporate controller(including shareholders,regulators, creditors and managers) has on the relations between opportunism motivation and cost stickiness. Finally, based on the combination of theoretical analysis and empirical analysis, conclusions can be drawn. In addition, balance of powers and constraints between main controller and manager is explored, and the related organizational structure is reasonably set up, thereby inhibiting opportunism to reduce cost stickiness, eventually countermeasures and suggestions are put forward to improve the serious cost stickiness in manufacturing industry.Eventually the following conclusions are drawn: there is costs stickiness in the listed companies of China’s manufacturing industry; opportunism views of management promote costs stickiness; shareholding concentration, equity checks and balances degrees, independent directors proportions, board held times, debt structure,debt scale, managers constraint mechanism and incentive mechanism can alleviate the agency problem between shareholders and managers, thus reducing costs stickiness level. Therefore, using external control right to adjust structure and operation mechanism of shareholders, regulatory institutions, creditors and managers can benefit the restriction of managerial opportunism motivation behavior and reduction of cost stickiness.