Study Of Strategic Effect Of Listed Companies Costs Stickiness

In traditional accounting concepts, we believe that is linear relationship between cost and volume of business, the cost is only affected by the level of business, regardless of the decision-making capacity of enterprises, managers. However, it is not the case, existing research shows that is not simply a linear relationship, but when the increase in unit costs increase is greater than the reduction in the volume of business at reducing. the unit cost of this phenomenon is sticky. It has been proved that our company’s extensive listing of the existence of viscous and sticky and achieved fruitful results, but it rarely involves study of the economic consequences of a viscous, so this is ready to study cost viscous effect on the future.This paper selects Shanghai and Shenzhen A-share listed companies in 2006 to 2013 financial data as the research samples of empirical test. Firstly, on the basis of predecessors, this article will take the existence of the sticky, strategic cost viscous effects. The impact on the cost of the cash effect of viscous strategy, impact on cost management incentive strategy viscous effects through theoretical analysis, and put forward relevant assumptions. Secondly, establish the expected cost stickiness test model and empirical test, and analyze the results of inspection.The results indicate China’s listed companies has cost stickiness, cost viscosity has strategic effect, cost of spending has important effect to improve the market competitiveness of enterprises in the future, cash holdings of listed companies have a significant impact on the strategic effect only cost viscous, sticky obvious impact on fees, we can’t expect cash alone would bring many core competitiveness, management incentives( managerial ownership level) have an important impact on the strategic effect of cost stickiness, high level of management shareholding enterprise cost expenditures will be more positive impact on the future market competitiveness of enterprises. On this basis, this paper thinks that since the cost has strategic effect, then we should be considered excessive emphasis on cost reduction is appropriate in the ordinary course of business, strategic effect of the cost show the arrangement is not always self-interested behavior management from the side that the management of business costs, management will also consider the future of the enterprise from the long-term development of the enterprise, it is necessary to consider this point when we are formulating the supervision and incentives about the managements.