Research On The Influence Of The Relationship Between Banking And Business On Cost Stickness

The ultimate goal of enterprise production and management is to maximize the value of the enterprise.In the process of actual production and operation,the separation of ownership and management of the enterprise leads to the opportunism behavior of managers.It makes the cost of the enterprise not always the same as the increase in revenue and the decline of the rate of change,so causes the cost stickness.The Cost Stickiness hinders the realization of the goal of maximizing the profit of the enterprise and is not conducive to the long-term development of enterprises.The main reason for the cost stickiness of enterprises lies in the opportunism behavior of managers.To reduce the cost of the enterprise,it should not only start from the self discipline of managers,but also need to have a sound external oversight mechanisms for the management of supervision,to constraint its selfish behavior and reduce the enterprise's cost stickness.At present,there are three main types of bank-firm relation between banks and enterprises:business executives having banking background,banks participating in corporate shares and enterprises participating in bank shares.In order to ensure the enterprise to timely repay the loan,reduce the risk of their business,bank will pay more attention to the business situation of enterprises after the establishment of bank and enterprise association mechanism.This mechanism can reduce the information asymmetry between banks and enterprises,help banking supervise the enterprise conveniently,and have a certain effect on the cost of the enterprise management activities.This article reviewed the literatures on the cost stickiness and bank-firm relationship,selected from 2009 to 2014,China's Shanghai and Shenzhen a-share listed companies' financial data,selected reasonable sample and data.Use Excel and Eviews software to do empirical analysis of the data.Starting from the research on the effect of bank related mechanism on the cost and expense stickiness of enterprises,this article had three specific comparative analysis:(1)contrasting the effect of the viscosity of the enterprise management expenses and the cost stickiness is influenced by the banking association mechanism;(2)contrasting the effect of different types of bank-firm relation on enterprise cost and expense stickiness;(3)contrasting the effect of bank-firm relation on the cost and expense stickiness of enterprises with different property rights.The study finds that the bank-firm relation can reduce the cost and expense stickiness of the enterprise in general.The effect of business cost stickiness is better.Different bank-firm relation has different effects on the cost and expense stickiness of enterprises.Bank participation in corporate equity can be a good oversight of corporate managers and reduce cost stickiness.But the enterprise participates in the bank equity to reduce the bank independence,is not advantageous to the enterprise cost expense viscosity reduction.The impact of bank-firm relation on the cost stickiness of different property rights is different,and the effect on the cost of the non state owned enterprises is better than that of the state-owned enterprises.