A Research On The Impact Of Executive Incentives On Cost Stickiness With The Sample In Manufacturing Companies

With the rapid development of our country's economy and economic globalization,under the dual effects of China's enterprises face more fierce market competition and more economic environment uncertainty,forcing enterprises to seek to enhance their competitiveness and ability to resist risk management style.Cost control management can help enterprises in the standard cost accounting mechanism to reduce the cost,allows businesses to keep more profits but also to improve the efficiency of management to make better economic decisions,promote the enterprise the competitive ability and ability to resist risks.Viscous cost control management is the core of cost,agency problem is the main cause of cost stickiness,and executive incentive can reduce the agency conflict,so this article from the perspective of agency costs,study the influence of the executive incentive for cost stickiness,and compare the different ownership concentration under the executive incentive to charge the effects of viscosity difference,facilitate enterprise better from the perspective of cost stickiness to establish a reasonable salary incentive system and equity incentive plan,to a certain extent,reduce the unnecessary cost of enterprise,to help managers on the basis of fully considering cost stickiness to make scientific prediction and decision making.this paper based on the project ?A research on the impact of executive incentives on cost stickiness with the sample in Yunnan manufacturing companies ? which founded by Yunnan Provincial Education Department.the influence of executive incentive on the stickiness is studied in order to find out the influence of executive incentive on the stickiness.First of all,through the elaboration of the research background,significance,idea,framework and the theory of classical literature,this paper lays a theoretical foundation for the writing of this paper.Secondly,the paper puts forward the research hypothesis of this paper through the analysis of cost stickiness,executive compensation and related theories.Again,this article selects 2010-2016 ashare manufacturing listed companies in China for 7 years basic empirical test samples,carries on the descriptive statistics analysis,correlation,regression analysis and robustness testing,the empirical results are accurate,able to provide persuasive hypothesis test data analysis.Finally,this paper summarizes the paper and puts forward corresponding policy Suggestions to analyze the limitations in this paper.The possible innovation points of this paper are as follows: first,the innovation of the research perspective,the main focus of the previous research on the monetary incentive and the ownership concentration,combined with the actual background of our country,this paper will study the influence of equity incentive on the cost stickiness,which will help to understand the equity incentive and the Cost Stickiness of the executive.The relationship between them also provides a valuable reference for the regulatory agency to standardize the implementation of equity incentive plan,and further compares the impact of compensation incentive and equity incentive on Cost Stickiness.At the same time,this paper studies the incentive function of different monetary compensation gap to managers,and provides empirical test data for improving the cost management control of enterprises in China.Second,this article will study the abnormal value of the sample of the listed companies of our manufacturing industry(the change of the sales revenue and the cost in the same direction),and avoid the influence of the conclusion of the abnormal value research.Secondly,because the management cost includes the cost of executive incentive,the cost of executive incentive is always kicked out of management expenses.The model selected in this paper is the basic model of Anderson(2003),and the control variable is added to this model.In order to avoid the self selection effect,this paper selects the PSM model for robustness analysis.