Ownership Structure,Managerial Overconfidence And Corporate Cost Stickiness

With the increasingly fierce competition in the modern market,cost management and cost control have become an indispensable part in the operation of modern enterprises.The cost decision will affect the strategic direction of the whole company and further affect the investment decision.Understanding the relationship between cost and business volume is crucial to cost control.The traditional accounting theory of constitutive state theory points out that there is a direct proportional change between cost and business volume.However,a literature study shows that the change of cost and business volume is asymmetrical,that is,when the business volume increases in a certain proportion,the cost does not rise in an equal proportion.This phenomenon is called "cost stickiness" by the academic circle.Since the discovery of this phenomenon,many scholars at home and abroad have begun to study in different fields and make Suggestions for the cost management of enterprises.Since managers can control most resources of enterprises,especially have great decision-making power in the aspect of expense,it is of great value to analyze the causes and characteristics of cost stickiness from the perspective of managers.Scholars in the field of behavioral finance believe that the irrational behavior of managers is one of the important factors influencing the decision-making and development of companies.At the same time,proper ownership structure also plays an important role in corporate governance.Therefore,from the perspective of manager overconfidence,this paper emphatically analyzes the relationship between ownership structure and managerial overconfidence and cost stickiness.Theoretically,this paper expands the factors influencing cost stickiness,mainly discusses the relationship between managerial overconfidence and cost stickiness,and enriches relevant researches on the economic consequences of managerial overconfidence.At the same time,the ownership structure was incorporated into the research framework to explore the difference of the effect of overconfidence on cost stickiness in different ownership structure enterprises.From practical point of view,this article in resources allocation and optimization for the company,the respect such as cost decision-making provides a set of rational thinking,in addition to manufacturing enterprises to keep the right equity structure provide a certain basis,is advantageous for the shareholders of managers be better supervision,and maximize their own interests.The content of this paper mainly includes the following six parts:The first part is the introduction.This part first introduces the background of the topic,and points out its theoretical significance and practical value.Secondly,it expounds the innovation of this paper,and introduces the research content and framework of this paper.The second part is literature review.This part,in turn,sorted out and commented the existing literature and materials from the aspects of cost stickiness,overconfidence of management and ownership structure,and further clarified the idea of the research.The third part includes the theoretical basis and exploration hypothesis.This part first summarizes the research theories related to this paper,including information asymmetry theory,corporate governance and principal-agent theory,transaction cost theory,behavioral finance and overconfidence theory.Then it analyzes the influence of manager's overconfidence on the cost stickiness of the enterprise and the effect of ownership structure on the relationship between them.The fourth part is research design.This part first defines the variables of overconfidence,cost stickiness and ownership structure by referring to the existing literature.Then it expounds the analysis model of this paper,and at the same time,based on the research hypothesis,gives the expectation for the symbol of the related variable coefficient.At last,describes the selection,collection and sorting process and results of the analysis sample.The fifth part is empirical analysis.Firstly,statistical analysis is carried out around the variables in the analysis sample,and the data distribution details are introduced.Then,based on the above three research hypotheses,a sample regression analysis was conducted according to the model,and the relationship between ownership structure,manager overconfidence and enterprise cost stickiness was analyzed according to the conclusions.Finally,the robustness of the above results is verified.The sixth part includes analysis conclusion,policy guidance and its limitation.Based on the results of empirical analysis,this paper summarizes the research conclusions of this paper,and puts forward several Suggestions from multiple perspectives.At last,it expounds the deficiencies of this paper.Based on the financial data of a-share listed companies in Shanghai and Shenzhen stock markets from 2010 to 2017,this paper draws the following conclusions on the basis of empirical analysis:(1)Overconfidence of management increases cost stickiness.(2)High ownership concentration can inhibit the enhanced relationship between overconfidence and cost stickiness of managers.(3)Compared with state-owned listed companies,the enhanced relationship between overconfidence and cost stickiness in non-state-owned listed companies is relatively weak.The innovative points of this paper include:(1)Interdisciplinary research complements the research on the total cost stickiness of China's manufacturing enterprises.(2)Add the variables related to the ownership structure on the above basis,and supplement the domestic research on the relationship between overconfidence and cost stickiness from the perspective of ownership structure.