The Influence Of Manager's Background On The Cost Stickiness Of Chinese Listed Manufacturing Companies

The traditional cost theory suggests that the relationship between firm's cost and business volume is linear,but this assumption is too idealistic and does not correspond to social reality.At present,there is plenty of evidence showed that Cost Stickiness exists in real economy.And Cost Stickiness exists in various countries,including China.Domestic scholars' researches on the influence factors of Cost Stickiness are mostly from the angle of industry environment,capital intensity,organizational structure,manager's overconfidence and so on.However,there still no systematic and in-depth study on the background characteristics of managers.But,as a key part of corporate governance,managers play an important role in the company's management decisions.Based on the relevant research results of domestic and foreign scholars,this paper analyzes the influence of the background characteristics of managers on the cost stickiness of manufacturing listed companies in China,through the combing of literature and data collection.First of all,this paper expounds the related concepts and theories,and explains the mechanism of the managers' background characteristics on the cost stickiness,as the theoretical basis of the article.Secondly,according to the relevant theoretical basis,this paper puts forward 5 research hypotheses,and selects1113 manufacturing companies listed on the A-share market in China as the research object.This paper also collects and sorts out the annual financial report data and the manager's background data(age,gender,education,tenure)of the sample companies during 2010-2015,then constructs the log linear models.Starting from the perspective of the existence of cost stickiness and the relationship between the four managers' background characteristics and the cost stickiness of manufacturing listed companies in our country,this paper uses the collected data to carry out the descriptive statistical analysis,correlation analysis and regression analysis,and the results were also tested with robustness,then draws the research conclusion of this article,and the differences between state-owned enterprises and non-state-owned enterprises are discussed.In this paper,we found that: 1.The phenomenon of cost stickiness is still significantly exists in the manufacturing listed companies in our country,and the stickiness level of state-owned enterprises is higher.2.In the whole sample enterprises and thenon-state-owned enterprises,the average age of managers is significantly and negatively correlated with the level of cost stickiness,while the management's male occupancy ratio has a significant positive correlation with the cost stickiness.In addition,the average academic qualifications of managers only have a significant negative impact on cost stickiness in the whole sample business.3.Although the average tenure of the managers is positively related to the cost stickiness,but it doesn't pass the significant test,so,the manager's tenure may not be an important factor for cost stickiness.Finally,according to the research conclusion,this paper puts forward the corresponding countermeasures and suggestions on how to weaken the cost stickiness of enterprises,based on the two aspects of the background characteristics of managers and the external environment of enterprises,for example:appropriately increase the proportion of female managers;employ some older,experienced managers;pay attention to the appointment of highly educated personnel;give the managers the appropriate equity incentive and salary incentive;strengthen macroeconomic regulation and control;improve the market economic system and the company's internal governance structure,etc.