Research On The Impact Of Cost Stickiness On Performance Of Manufacturing Listed Companies

The conventional cost character theory indicates linear relationship between cost and business volume.However,recent empirical study finds that there is an asymmetry relationship between marginal change rate of cost and change direction of volume which is named cost stickiness.The new theory is challengeable and researchers have started to study the cost variation law in a new view.Related studies have been conducted at different angles and fields,mainly focusing on characteristics of cost stickiness(such as existence,reversal property,reversal directionality,et al.)and influential factors,while few on economic consequences caused by the cost stickiness.However,clarifying the economic consequences of cost stickiness is helpful to improve enterprise performance.Therefore,the purpose of this thesis is to study the effect of cost stickiness on the performance of listed companies by adopting the method of empirical research.Basing on agency theory,contract theory,efficiency theory and theory of incomplete contract and drawing on the domestic and foreign related literature research methods and conclusions,this thesis explained the impact of cost stickiness on profit ability,operation ability,solvency and growth respectively for the later analysis,and put forward the research hypothesis.Using the relevant data of listed companies from China Shenzhen and Shanghai stock market between 2010 and 2014 as samples,this thesis made descriptive statistics,correlation test and regression to analysize and test the impact of cost stickiness on profit ability,operation ability,solvency and growth respectively.Finally,based on the empirical results,the thesis analysised and tested the affected factors of cost stickiness from the view of corporate level and put forward suggestions of controlling cost stickiness to enhance the performance of listed companies.This thesis introduced Weiss model to calculate cost stickiness instead of traditional ABJ model to measure the strength of cost stickiness,and established the regression model by using linear regression analysis method.Through empirical research and test,following conclusions were obtained:(1)There is not only cost stickiness but also reversal cost stickiness existing in manufacturing enterprises and the characteristic of cost stickiness is more obvious,which supports the previous conclusions about the existence of cost stickiness in listed manufacturing companies;(2)Cost stickiness is negative correlation with manufacturing enterprises profitability;(3)Cost stickiness is negative correlation with manufacturing enterprises operation capability;(4)Cost stickiness is positive correlation with manufacturing enterprises solvency;(5)Cost stickiness is negative correlation with manufacturing enterprises growth;(6)The impact of ownership structure,board structure and manager structure on cost stickiness are different,thus improving the strength of the cost stickiness by different combination of them to enhance the performance of enterprises.