Research Of Managerial Ability On Cost Stickiness

Anderson et al.firstly confirmed the existence of cost stickiness,that is,the magnitude of the increase in the cost brought by the increase in business is greater than the magnitude of the decrease in the cost brought by the decrease in business.The existed studies show that the Cost Stickiness of manufacturing enterprises is serious,and the high level of cost stickiness has a negative impact on the performance of enterprises.Cost stickiness,as a kind of financial phenomenon,is the result of investment decision and resource allocation to some extent.However,most of the scholars,explore the impact of managers' ability on the cost stickiness more from the point of view of managers' self-interest,and less from the perspective of the efficiency of managers to enterprise from the angle of input-output.Therefore,this paper uses empirical research method,and considers the use of DEA-Tobit model to measure the ability of managers because of input-output to study the impact of managers' ability on the cost stickiness.At the same time,in order to explore the mechanism and approach of the managers' impact on cost stickiness,this paper divides the cost into the cost of management and the cost of sales,and studies the influence of managers' ability on them.On this basis,this article also divides the samples based on the nature of property rights,the chairman and general manager of part-time,free cash flow and the degree of marketization and other indicators,to explore the difference between the two groups of different groups.This paper selects China's Shanghai and Shenzhen A shares of manufacturing enterprises 2007-2015 years of data as the study samples,the empirical results show that:(1)there is Cost Stickiness in China A shares of manufacturing companies in general;(2)the capacity of the managers and the cost stickiness is negatively correlated;(3)the management ability has greater negative impact on cost stickiness of non state-owned enterprises;(4)if the chairman and general manager is not the same person,management ability has greater negative effects on cost stickiness;(5)if the level of free cash flow is negative,management ability has greater negative effects on cost stickiness;(6)If the degree of the market is large,management ability has greater negative effects on cost stickiness At the same time,influence of managers' ability in the cost stickiness of cost of management is similar to the Cost Stickiness conclusion;influence of management ability in cost stickiness of cost of sales is not significant,As for research in groups,only when the chairman and general manager is not the same person the impact of managerial ability on the cost stickiness of cost the sales is significantly negative.Finally,the following suggestions can be provided according to the empirical results:(1)introduce or improve the executive mechanism of competition;(2)improve the level of corporate governance and strengthen internal and external supervision of managers;(3)establish cost supervision and control system;(4)promote the development of factor markets in order to enhance the degree of market.