Empirical Research On Enterprise Life Cycle Stages,Industry Difference And Cost Stickiness

The traditional Cost Behavior Model in management accounting assumes that there is an ideal linear relationship between the changes of cost and volume of business.However,many scholars,both at home and abroad,conduct a large number of studies,they all find that there is a non-linear relationship between the changes of cost and business volume,which is called Cost Stickiness.The Cost Stickiness is defined as the asymmetry in the cost changes with the volume of business.That is to say,the change of cost increasing is greater than reducing while the volume of business changes the same margin.The researches on the Cost Stickiness can not only improve the business strategic decision for the company,but also reveal the cost management behavior to a certain extent.However,only a few of scholars researched the relationship between Cost Stickiness and Corporate Life Cycle.Since cost is important in practice,this thesis,based on the existing cost stickiness theory,makesfurther study on how sales cost and administration cost stickiness vary in different Corporate Life Cycle or Industry.Therefore,this thesis has theoretical and practical significance.This thesis reviews and summarizes the research on cost and expense stickiness by domestic and foreign scholars in the following four aspects: existence & formation & factors & economic consequences.Then,with China's A-share listed companies as samples,this thesis discusses the existence of Sales & Management cost stickiness,the relationship between Cost Stickiness & Corporate Life Cycle & Industry Difference,and the impact that capital intensity,labor intensity and asset-liability ratiohave on cost stickiness.The regression results show that:(1)there is significant difference in Sales and Management cost stickinessin A-share listed companies,which is influenced by life cycle and their ownership;(2)theSales and Management cost stickiness also differs in companies that are in the same life cycle but in different industry.In turn,the stickiness is not the same in companies that are in the same industry but not the same life cycle;(3)the impact that capital intensity,labor intensity and asset-liability ratio have on Sales and Management cost stickiness varies with life cycle and industry.Overall,the impact of the first two factors is greater than the last one.This thesis shows that it is an objective reality that the Cost Stickiness exists in China's A-share listed companies,but it differs fromthe Corporate Life Cycle or Industry.This research provide a reference for the rational use of corporate resources,strategy development,cost management decision-making,performance evaluation,profit forecasts and so on.