Ownership Concentration,Audit Quality And Cost Stickiness In China

The theory of traditional cost behavior states that when the volume of business increases(decreases)by a certain percentage,the cost will increase(decrease)by a certain percentage year-on-year,that is,the cost is directly proportional to the volume of business.However,this theory seems to be too idealized in the actual business process,and domestic and foreign scholars have also conducted research on this.Anderson(2003)shows through empirical research that the cost and output do not show a perfect proportional relationship,and that the increase in output caused by the increase in output costs is greater than the reduction in output caused by the reduction in output,so the characteristic of cost stickiness exists.Scholars at home and abroad have chosen to find breakthroughs from within the company when they study the factors that can cause cost stickiness to weaken.The impact of external audit as an important external governance mechanism on cost stickiness has not received due attention.This paper will study the mechanism of audit quality on cost stickiness,and further integrate internal corporate governance to test the degree of audit quality on cost stickiness under different ownership concentration degrees.This article consists of five parts.The first part introduces the background and significance of the research and combs the literature of domestic and foreign scholars.The second part explains the concept and measurement of major variables,and describes the theoretical basis of this article;Some hypotheses are put forward based on relevant theories.The 2011-2016 Shanghai Stock Exchange A privately-owned manufacturing listed companies are sampled,and the model of this paper is constructed based on the research of Anderson(2003).The fourth part is the empirical analysis and tests the audit.The impact of quality on cost stickiness and the difference in this effect under different equity concentration degrees;the fifth part proposes corresponding policy recommendations based on research conclusions and points out the limitations of this paper.The research shows that: First,the sample company's sales management costs and total operating costs have significant stickiness characteristics,while the operating cost stickiness characteristics are not significant.The reason for this is that the one hand,the proportional relationship between product cost and output in the manufacturing company's operating costs.Significantly,on the other hand,management's pessimistic expectations led to a lower opportunity cost forcompanies to adjust costs downwards,and a closer relationship between business cost and business volume.Second,the sample companies have high external audit quality in the case of high audit quality.The weakening effect of the viscous characteristics of sales management fees and total operating costs will be more significant.Third,in the different degree of ownership concentration,the external audit has a difference in the weakening of cost stickiness.When the ownership concentration is low,external independent auditing The weakening effect of stickiness is more pronounced.