Research On The Correlation Between Cost Stickiness And Business Performance

Cost management is an important management tool for modern companies.As scholars study the costs,they gradually find an interesting phenomenon.The cost reduction when the business volume decreases is less than the cost increase when the same business volume increases.Correspondingly,the concept of cost stickiness was proposed,so the linear symmetry theory of traditional cost behavior was gradually overturned.Scholars found and concluded in subsequent research that there are cost stickiness phenomena in different countries,industries,and regions.However,there are few conclusions about the economic consequences of cost stickiness.Therefore,this paper selects corporate performance as a relevant indicator and discusses the relevance of cost stickiness and the long-term and short-term performance of the company.This article reviews the literature on the characteristics of cost-viscosity,causes of formation,influencing factors,and economic consequences.Based on the original theory,this paper sets out the starting point of this article.First,we selected the Shanghai-Shenzhen A-share listed manufacturing company from 2011 to 2016.Based on the ABJ model,it verifies that the manufacturing companies in China's Shanghai-Shenzhen A-share listed company do have cost stickiness,and understands their characteristics.Through calculations and analysis,it is found that manufacturing companies also have the phenomenon of cost stickiness and cost anti-stickiness.,and based on the micro-WEISS model,accurately calculate the true sticky value of each company,and then through the definition of variables,build a model for regression analysis,further study the existence of cost stickiness and its relevance to the long-term performance of the company.Finally,through the regression analysis results,it provides policy suggestions that are conducive to the development of the enterprise,so that the enterprises can better understand and improve the cost-adhesion level,and ultimately play a role in seeking benefits and avoiding harm.Finally,the following conclusions are drawn:(1)In many industries,manufacturing stickiness is prominent,and the cost stickiness is more than the cost anti stickiness;(2)The cost stickiness has a negative correlation with the short-term performance of the company,and the cost anti stickiness On the contrary,excessively high cost stickiness and low cost anti-stickiness will inhibit the short-term performance of the company;(3)Cost stickiness,cost anti-stickiness and corporate performance areall positively correlated.Relatively high stickiness will increase the firm to some extent.The long-term performance;(4)In order to ensure that enterprises can develop in the long-term and balanced development,focusing on the long-term development of the company,the viscous level should be controlled within the range of(0,6).The innovation of this paper is to use the WEISS model to manually calculate the viscous value of each company.Through a large sample regression,the content of the research is innovative and the reliability of a large number of data analysis is strong.When adopting the research model,we use the ABJ model to examine the true cost stickiness of the industry macroscopic and the WEISS model to examine the correlation between cost stickiness and corporate performance on a microscopic level,which double validates the existence of cost stickiness.