Research On The Influence Of Cost Stickiness On Enterprise Performance

The traditional cost behavior view argues that the magnitude of the change of the cost is only related to the change of the volume of business,and it is the same proportion.However,since 2003,more and more scholars have found that the enterpriseasymmetric cost behavior:the enterprise prefers to retain some redundant resources so that when revenues fall,the decline in the cost to be significantly less than the decrease in the income.We call it the cost stickiness,and its impact on the performance or value of the enterprise should be concerned.According to previous research results,I think that the influence of cost stickiness on the performance of the enterprise is not only to be judged as the "good" or "bad".Effects on the enterprise performance of cost stickiness is based on the results of multiple motivation by management.Using the data from 2007-2015 A stock market listed companies as a sample,I study on the influence of cost stickiness on the enterprise performance.In addition,I further research that whether the reasonable ownership structure can enhance the effectiveness of cost stickiness,from the view of the motivation of managers.Through theoretical and empirical analysis,I draws the following conclusions:(1)in the A stock market,cost stickiness will reduce the enterprise performance,and this effect can be continued;(2)The more cost items we take into account when we measure the cost stickiness level,the entirely we can capture the change of cost stickiness level caused by managers;(3)The reasonable ownership structure can enhance the effectiveness of cost stickiness,forcing managers to make decision from the cost the perspective of enterprise.According to the research conclusion,I believe that in view of poor macroeconomic situation,the Chinese listed companies should pay more attention to cost management,through arranging reasonable ownership structure,strengthening external supervision or other measures to improve the corporate governance mechanism.In that way,managers'self-interest motivation can be restrained,enhancing the positive effect on the enterprise performance of cost stickiness.The main contribution of this paper lies in:(1)We distinguish the causes of coststickiness in theory,and explain the different effects of different cost stickiness on enterprise performance;(2)We investigate the effect of cost stickiness on enterprise performance by empirical analysis,and try to explain the different effects from the perspective of managers' motivation.At last,we give some suggestions which how to enhance the effectiveness of cost stickiness.