External Auditing?Property Rights And Cost Stickiness

China's listed companies in the prevalence of cost costs sticky,in recent years has become a hot topic of scholars.It refers to the cost of the increase with the volume of business when the change is greater than the decline in the volume of business with the rate of change,that is the cost of the cost of "easy to rise and difficult to fall" asymmetric phenomenon.The existence of cost stickiness reduces the management decision-making behavior and cost control efficiency,seriously restricting the further development of enterprises.Under the nature of our country's special property rights,there is a difference in the degree of corporate cost stickiness,therefore it is important to understand the cost stickiness of enterprises with different nature of property and how to curb the cost stickiness of enterprises.It has become the most important thing to alleviate the business agent and improve the management.Through the literature of reading and combing,we found that the study on the cost stickiness,domestic and foreign scholars are mainly concentrated in the cost stickiness of the characteristics,causes and influencing factors and economic consequences,rarely from the perspective of external governance mechanism to carry out research.External audit as an effective external corporate governance way to a certain extent to ease the management and shareholders of the agency conflict,reduce the management of opportunistic motivation,thereby inhibiting the cost stickiness of corporate.This article from the most popular and most scholars agree with the principal agent theory caused by the cost stickiness discussion,and then from the external audit as an external governance mechanism can play a role in the governance of external audit how to Suppress cost stickiness,through research design we choose 2007-2015 Shanghai and Shenzhen A shares listed companies,than divide into state-owned enterprises and non-state-owned enterprises according to the actual controller,and further state-owned enterprises are divided into central state-owned enterprises and local state-owned enterprises,We also use different types of costs as explanatory variables for empirical testing,conclusion as below:(2)External auditing has a detrimental effect on cost stickiness,and the higher the quality of external auditing,the stronger the inhibitory effect.There are differences in the effect of external audits on the different costs,External auditing has the strongest inhibition effect on the Administrative costs stickiness,sales costs followed by and the weakest operating costs.(2)China's listed companies are generally costly stickiness,the cost stickiness of state-owned enterprises is higher than non-state enterprises,In state-owned enterprises,the cost stickiness of central state-owned enterprises is higher than that of local state-owned enterprises.(3)There are differences in the inhibitory effect of external auditing on listed companies with different property rights,Relative to non-state enterprises,the external audit of state-owned enterprises to reduce the cost stickiness stronger;and relative to the local state-owned enterprises,the central state-owned enterprises of the external audit of the cost stickiness play a more effective role.According to the study of this article,Make policy recommendations on the different property rights of enterprises how to suppress cost stickiness:(1)Alleviate the nature of different property rights agent issues,improve the cost management system;(2)Strengthen the governance effect of external audit,cooperate with internal governance mechanism;(3)Standard office audit fees,improve the audit quality of accounting firms.