Empirical Study On The Relationship Between Managerial Overconfidence And Cost Stickiness Of Gem Listed Companies:the Intermediary Role Of Competitive Strategy

In recent years,scholars have found that traditional cost theory can no longer explain the phenomenon of asymmetry of cost and sales.In this case,Anderson,Banker and Janakiraman(2003)first proposed the concept of "Cost Stickiness".At present,the research on the causes of cost stickiness is mostly from the perspective of ownership structure and corporate governance,but there is few research from the perspective of managerial overconfidence.As the decision-makers and implementers of the company's daily operation,the manager's personal preferences and personality traits also affect all aspects of the company's various decisions and strategies.This research will combine the theory of behavioral finance and management science to analyze cost stickiness,broaden the perspective of research on cost stickiness,and try to explore the relationship between managerial overconfidence and cost stickiness under the mediating role of competitive strategy.China's Growth Enterprises Market Board was officially listed on the Shenzhen stock exchange in October 2009,mainly acts as a supplement to the main board,providing financing platform for the emerging companies,small and medium-sized enterprises.China's Growth Enterprises Market Board started relatively late when compared with the Main Board,and the policy environment is also relatively unrestrictive.China's Growth Enterprises Market Board acts as a national experimental field to support high growth and high-tech Small and Medium Enterprises,which has characteristics of high growth,high risk and high competition.In the past,The previous research on cost stickiness and managerial overconfidence mostly took the motherboard as the research object,and rarely involved companies listed on Growth Enterprises Market Board.This paper will complement the research gaps in this area,in order to propose corresponding policy recommendations for companies listed on Growth Enterprises Market Board to weaken managers' overconfidence and improve benefits of cost management.Firstly,the paper reviews the relevant literature on the cost stickiness,managerial overconfidence and competitive strategy at home and abroad,and defines their basic concepts based on literature review.Based on the theories of overconfidence,strategic cost management,bounded rationality,and the intermediary theory used in empirical test,this paper constructs the research model and puts forward the hypotheses.Using the relevant financial data of 242 companies listed on Growth Enterprises Market Board in the past 2013-2016 years,this paper tries to study the influence of managerial overconfidence on the cost stickiness from the perspective of competitive strategy,which functions as an intermediary.The empirical evidence shows(1)the cost stickiness exists in the GEM listed companies in China;(2)managerial overconfidence will improve the degree of cost stickiness;(3)the implementation of different competitive strategies will have different effects on the cost stickiness.The implementation of low cost strategy will weaken the cost stickiness,while the implementation of differential strategy will enhance the cost stickiness;(4)competitive strategies play a partial mediating role in the relationship between cost stickiness and managerial overconfidence.