The Degree Of Marketization, Management Self-interest And Cost Stickiness

Cost stickiness is an important corporate issue that has gradually drawn the attention of scholars in recent years.In the operation and management of enterprises,the cost management plays a decisive role in the cost measurement and evaluation is therefore very important.At present,more and more scholars in academia have paid attention to the phenomenon of cost stickiness and many factors that affect the stickiness of expenses,such as the property right,agency problem and executive compensation.Early studies by foreign scholars found that there was a positive correlation between self-interest motivation and cost stickiness of management-level imperialism.However,other scholars subsequently questioned the conclusion because the results of the research indicated that this conclusion did not suitable for all countries.As far as the listed companies in our country are concerned,whether management's motivation for self-interest has played an important role in the stickiness of the costs is yet to be considered.In addition,the process of marketization has always been an important issue in the economic development of our country.Up till now,the reform of the market economy system in our country has been gradually developed.However,the present market levels of factor markets in various regions are still different.The differences in the degree of marketization varies greatly.Therefore,to study the impact of the degree of marketization on the cost viscous can help us to understand the emergence and characteristics of the cost-stickiness of the listed companies in our country and the economic results of the marketization reform in our country.This article uses the A-share listed companies from 2011 to 2016 as a sample to conduct empirical research.Using the classic Change model proposed by Anderson et al.in 2003,to verify the relationship between managerial self-interest motivation and cost stickiness and the effect of marketization on the relationship between management's self-motivation and cost stickiness.The results show that: First,the marginal reduction of the cost of listed companies in China when operating income decreases is less than the marginal increase of operating income,which shows that the cost of listed companies in our country is sticky.Second,In the case of motivation,the marginal reduction of expenses when the operating income decreases is smaller than the marginal reduction without considering the management self-interest,which shows that management's self-motivation plays a positive role in the cost stickiness.Thirdly,the motivation of self-motivation of the managers has more influence on the stickiness of the cost of the listed company in the lower marketization than on the stickiness of the listed company in the higher degree of marketization.The research enlightenment from this paper is as follows: Firstly,as management's self-motivation can significantly increase the degree of cost-stickiness,enterprises should establish and improve the corporate governance mechanism and continuously improve the corporate governance level,starting with the supervision and management and incentive system and creating A management and corporateobjectives in line with the atmosphere,to alleviate the self-motivation of management to the role of cost-viscous to strengthen the role;Second,to understand and assess the cost of sticky need to consider the market environment where enterprises,the more in the less market-oriented areas The more companies should attach importance to the management of self-motivated behavior of management,as far as possible to achieve the flexible adjustment of resources,reduce the sticky costs in order to improve the economic efficiency of enterprises;Third,the results of this study shows that a higher degree of market-oriented areas The overall level of cost-stickiness is low,which shows that the market-oriented reform can help to promote the efficiency of resource allocation in China.