Analysis Of The Influence Of Management Incentive On Cost Stickiness

After China's 12th five-year plan,the enterprise responded positively and promoted the reform of internal governance in an orderly manner.On the one hand,more and more people begin to know the risk of high leverage,enterprises and institutions are going to deleverage and reduce costs in order to build a reasonable capital structure and effective cost management.On the other hand,public limited companies start the equity incentive plan massively,and encourage managers to pay close attention to the long-term development and strategic objectives of the enterprise in the management decision.Therefore,this paper tries to study the influence of management incentive on cost stickiness through the combination of principal-agent theory,motivation theory,asset specificity theory and empirical evidence.In this paper,the management incentive is divided into monetary incentive and equity incentive according to the compensation structure,and the data of the A-Share stock markets in Shanghai and Shenzhen manufacturing companies from 2011 to 2016 are used as the research samples,and the influence of management incentive on the cost stickiness is studied in detail.The results show that:(1)In the manufacturing industry,management incentive has inhibitory effect on cost stickiness.(2)Compared with equity incentive,the negative correlation between monetary incentive and cost stickiness is more significant.(3)Under the influence of capital structure changes,equity incentive and cost stickiness have a significant negative correlation.The innovation point of this article is as follows: Firstly,this paper analyzed the impact of management incentive on cost stickiness from the perspective of enterprise internal environment.There is a further study on the phenomenon of cost stickiness.Secondly,this paper divides the incentive structure of management into monetary compensation incentive and equity incentive,and studies its impact on cost stickiness respectively.Thirdly,under the influence of capital structure changes,the equity incentive has a significant negative correlation with the cost stickiness.