Market Competition,Vertical Integration And Cost Stickiness

At present,China's economic has entered a new normal condition,and the urgency of reducing costs and increasing efficiency has increased in the energy industry.The impact of the marketization and the vertical integration status on the cost characteristics is worth exploring.In the existing research,the weakening effect of market competition on cost stickiness has been widely confirmed,but few scholars have studied the adjustment effect of other internal factors on the relationship between the two.No one has studied the relationship between vertical integration and cost stickiness so far.Therefore,it is valuable to study the relationship between market competition,vertical integration and cost stickiness of the energy industry.Based on the transaction cost theory,principal-agent theory and incomplete contract theory,this paper selects 142 listed companies in the energy industry from 2008 to 2017 as a sample to improve the classic ABJ model.This paper uses the least squares method to test the existence of cost stickiness,the impact of market competition on cost stickiness and the adjustment effects of vertical integration on the two.The study finds that energy industry listed companies have cost stickiness;the higher the degree of market competition in segment industries,the weaker the cost of enterprises;the increase in the level of vertical integration of enterprises can significantly enhance the weakening effect of market competition on cost stickiness.According to the research analysis conclusions,This paper proposes the following three suggestions: Firstly,optimize the corporate governance environment,reduce the cost of the enterprise from the root cause;Secondly,deepen the market-oriented reform of the energy industry,promote market competition and restrain the cost stickiness;Thirdly,promote the vertical integration of enterprises,to reduce the cost stickiness of energy companies in an environment where competition in the energy industry is intensifying,and promote energy industry listed companies to reduce costs and increase efficiency.