Research On The Interactive Relationship Between The Cost Stickiness And The Performance Of Listed Companies In The Gem Manufacturing Industry

In recent years,the slowing country's economic growth,the decline in consumer demand,the rising labor costs and resource costs,resulted in a small profit margins for enterprises.Effective cost control is the key to enhance the performance.In order to adjust the resources and reduce costs scientifically and rationally,to do a good job in the management of cost control,accurate understanding of the cost is the primary prerequisite.Research on Cost Stickiness break the traditional cost behavior theory,and truthfully reflect the changes of the cost.The GEM companies are in the early stages of development,with small scale,imperfect internal governance structure,high growth and high risk,unstable firm performance.Manufacturing is a fixed asset driven industry,when the volume of business changes,the cost is difficult to adjust,there may be a higher cost stickiness.Choosing the GEM listed manufacturing companies as the object,exploring the interactive relationship between Cost Stickiness and enterprise performance can improve the cost behavior theory,further enrich the theoretical system of cost stickiness.Also provide some suggestions for controlling cost and enhancing the performance.In the process of carrying out research,at the industry level,this paper uses ABJ model to test the existence of Cost Stickiness of the gem manufacturing industry;at the micro level,uses WEISS model to calculate the value of every company's cost stickiness,then make it a variable for regression analysis.This paper analyzes the influence factors of enterprise performance from the perspective of Finance and corporate governance;based on the incomplete contract theory,efficiency theory and principal agent theory,this paper analyzes the influencing factors of the Cost Stickiness from three perspectives: the adjustment cost,the opportunism and the manager's characteristics;the stepwise regression method is used to select the variables and the single equation model is established.At the same time,explains the interactionship between the two,but the single equation model studying simple causal relationships among the variables has limitations,the test of the hypothesis of the least squares method also shows that the OLS estimation method is no longer applicable,the study of the interaction relationship should be solved by the simultaneous equations,the Hausman test's results also prove the necessity of simultaneous equations.In this paper,the lag variable of Cost Stickiness and firm performance is added to the simultaneous equations to eliminate the influence of the variables themselves,the system estimationmethod(GMM)is used to carry on the regression,and the regression results of single equation and simultaneous equation are compared and analyzed.The conclusion of this paper is that the cost stickiness is an objective existence in the listed companies of gem manufacturing industry,there is a negative interaction between Cost Stickiness and firm performance,The smaller the cost stickiness,more flexible the adjustment of enterprise resource,more rapid the response to market changes,the better the performance of the enterprise;at the same time,the realization of enterprise performance requirements for cost control and resource adjustment,result in lower cost stickiness.Finally,based on the empirical results and influence factors,puts forward the following suggestions: establish the scientific and efficient incentive mechanism of manager,weaken the principal-agent problem;improve the corporate governance structure,improve the scientific nature of the decision-making;adjust the assets structure of enterprises,accelerate the turnover of assets,in order to improve the cost stickiness and enterprise performance.