Product Market Competition?Free Cash Flow And Firm Cost Stickiness

The biggest goal of the development of enterprise management is to survive in the fierce market environment,to seek development,to realize the enterprise's self value added.Cost management is the enterprises to enhance their own economic strength,make dominant position is one of the key elements in the fierce market competition,cost control for the enterprises to meet the fierce competition in the new century,enhance the enterprise profit space plays an important role.The traditional cost management theory believes that the cost of doing business with the business is proportional to the amount of change.Specifically,when the increase in the volume of business enterpriscs,the cost increases;when the reduced the volume of business,cost decrease and cost with the volume of business changes and increase and decrease in the proportion of the same.In recent years,with the domestic and foreign scholars have studied in-depth found the reality of the cost and volume of business is not a simple linear relationship,the business volume rise will bring the cost rise,and the decline in business volume will not necessarily bring about the same proportion of the cost down and scholars will be the the changes and business volume changes in non proportional changes in the definition of cost stickiness.With the discovery of the characteristic of the cost stickiness,the reverse and reverse characteristics of the Cost Stickiness have been found by the scholars,and the upsurge of the research on the cost stickiness is set off.It is found that the viscosity of the cost is widely existed in the manufacturing industry of our country,and the research on the Cost Stickiness has become a hot topic in recent years.The root of the existence of Cost Stickiness lies in the operator's consideration of the relevant decisions.With the development of economy,owners and operators of the separation of powers,operators based on self-interest motives are likely to appear the problem of "moral hazard" and "adverse selection",plenty of free cash flow operators to carry out the excessive investment and construction of one of the important factors of imperialism,the external market competition as important external factors,will affect the enterprise cost stickiness.Article in the analysis of the domestic and foreign existing relevant literature and theory based on selected our country manufacturing industry 1782 companies were designed and studied in this paper.Through descriptive analysis,correlation analysis and multiple regression analysis of effects of free cash flow and external degree of product market competition on Enterprise Cost Stickiness analysis,obtained by controlling the free cash flow and increase product market competition can effectively control cost stickiness.Finally,combining the conclusions of this paper put forward relevant policy recommendations from two aspects of government and enterprise.