Study On The Influence On The Enterprises Financial Performance Of Cost Stickiness

In recent years,the research on the theory of cost performance has become the hotspot of accounting circles,more and more scholars have found that the cost of business is not strict linear function relationship with the amount of business but rather an asymmetric nonlinear relationship.Through the existing research data analysis,because of increase or decrease in business volume,we find that the marginal rate of change in the cost of business when business volume falling is lower than it is on the equal rising.The scholars define this phenomenon as cost stickiness.The discovery of cost stickiness not only provides some reference for the formulation of the enterprise cost management system but also is the bridge between management accounting and financial accounting.It can be seen from the experience of Chinese scholars,China's attention to the cost stickiness is late.Therefore,the study of the effect of cost stickiness on the corporate financial performance will not only help managers understand the trend of enterprise cost change but also apply the results to enterprise cost management.This will lead to cost management more effective,so as to help enterprises to enhance financial performance,to improve the business level.By summarizing the research status of domestic and foreign scholars,it is discovered that the cost of cohesion is inseparable from the interaction of three theories of “principal-agent theory”,“transaction cost theory” and “incomplete contract theory”.Subsequently,the cost of transactions in the course of business operations,the cost of adjustment in the process of signing the contract,and the self-interest of the manager will cause the cost of stickiness.Moreover,through studying and designing on 1867 sample companies by collecting the data of the A-share manufacturing listed companies in Shanghai and Shenzhen from 2012 to 2015,this paper examines the existence of the cost stickiness of manufacturing companies in China and studies the relationship between the cost stickiness of manufacturing listed companies and the financial performance of enterprises.Results show that(1)Manufacturing industry listed companies in China have cost stickiness,the Amplitude of Cost variance of decreasing in business volume is lower than it rising.(2)The effect of cost stickiness on current financial performance is not significant.(3)The effect of the cost stickiness on the corporate financial performance of next period is inverted “U” curve.(4)the cost stickiness can be appropriated by influencing the cost of the viscosity of the factors.