Study On The Relationship Between Management Incentive And Cost Stickiness Of Listed Companies In Qinghai Province

A fundamental assumption in cost accounting is that the relation between costs and volume is symmetrical.However,with the development of behavioral theory of the management,positive accounting theory,scholars believe that the use of traditional cost-state theory to guide production and decision-making can mislead investors,but management's own discretion has a significant impact on cost.In 2003,Anderson put forward a concept of “cost stickiness”——that is whether cost increase greater than the decrease in the volume of business by an equivalent amount.Which breaks the shackles of the traditional cost theory.The theory of complete contract,optimistic expectations of managers,and agency problems are the causes of the stickiness problems resulting from the analysis of the thesis,but not limited to the above reasons.Asset specificity theory,signaling theory and avoiding uncertain actions also contribute to the cause of stickiness.Agency problem often leads to the opportunistic behavior of the management.Proper compensation and equity incentives for management can suppress agency costs and reduce agent conflicts.Based on this,this paper mainly starts from the agency theory,and research objects of listed companies in the A-share of Qinghai.It studies the current situation of cost stickiness of listed companies in Qinghai Province and the relationship between management incentives and cost stickiness.The results show that:(1)Cost stickiness and expense stickiness exists in the listed companies in Qinghai Province,moreover,the expense stickiness is slightly stronger than cost stickiness.(2)There is a significant difference in the stickiness among the listed companies in 2016.(3)There is a negative correlation between management pay and cost stickiness stickiness.(4)There is no linear relationship between management holdings and cost stickiness.(5)Among the selected control variables,board independence,staff intensity,asset intensity,property rights and Macroeconomic growth have different effects on cost stickiness and expense stickiness.And make the following suggestions:(1)Strengthening marketing of unused resources.(2)Formulate of performance evaluation criteria with company characteristics.(3)Focusing on the larger items in the cost of sales and management.(4)Enrich the career composition of independent directors.(5)Developing a suitable management shareholding ratio.(6)Motivate management from multiple perspectives;(7)Hiring better managers.