External Audit?Managerial Power And Cost Stickiness

Cost control has always been a core part of enterprise management,and the improvement of management efficiency in the enterprise,relys on enterprise management accounting promote cost efficiency and optimizing operational management,making scientific decisions.The rationalization of costs and expenses necessarily become an important area for enterprises to explore to improve the process of production and management,at the same time it is also one of the focus of cost management of academic research.Cost stickiness theories were trying to expose and explore a company's cost management.Since the concept "cost stickiness" is presented,it opened a new era of cost management research,causing many scholars both at home and abroad to study and explore.As a management executive,he is responsible for company management activities,and determines the direction and the amount of resources invested,from the cost of the cost stickiness concept in terms of the causes,management's decision caused stickiness characteristics on company expenses.Studying managerial power'impact and mechanism of action to cost stickiness,it is one of the possible innovation and research value of this article.When internal corporate governance mechanisms for the management lack constraints and incentives,since the company's management and client information asymmetry,management'opportunistic motives and selfish motives,might abuse power,resulting in an adverse impact on all aspects of the company,including remuneration manipulation,excessive perks,earnings manipulation and abundance of investment.There is a need for an effective means of management incentives or constraints.External Audit as an external mechanism of corporate governance,as an independent third party responsible for the management of financial statements prepared by the appraisal,external audit of the management of the exercise of power can deter and oversight and the role of disclosure to management abuse of power and its economic consequences could play an inhibitory effect.Select cost stickiness as a starting point,research the relationship between managerial power and cost stickiness both on the whole sample and under different ownership nature,and to further explore how the external audit affect the relationship between managerial power and cost stickiness both on the whole sample and under different ownership nature.These are the problems this paper wants to study and research.Based on regression test of the sample choosen from China A-share company board from the year 2010 to 2014,we concluded:(1)the presence of the Cost stickiness is existed in listed companies on average,and the cost stickiness of adminisstrative expenses is greater than the cost stickiness of selling expenses;(2)managerial power and cost stickiness have positive correlation;(3)external audit can restrain the positive relations between management and managerial power and cost stickiness.