Market Process?Debt Structure And Cost-stickiness

Cost is the lifeblood of an enterprise.Cost-leading strategy is one of the key strategies for an enterprise to win in the competition.Whether managers can control the definition and change form of the cost of an enterprise well is an important factor to achieve efficient cost control.But in the actual operation process,the cost of an enterprise is not simply proportional to the volume of business.When the volume of business decreases,the decrease of cost is often less than the increase of cost when the volume of business rises.This stickiness of cost and fee makes the income and cost of an enterprise change.Motion is not symmetrical.This phenomenon,which deviates from the traditional cost behavior theory,makes it more difficult to control the cost of an enterprise.Therefore,researching it and finding ways to control is a problem we should focus on.Previous studies have shown that the subjective decision-making of management is the key reason for the stickiness of cost and fee.The debt of an enterprise can restrict and supervise the management's decision-making behavior,and the influence of different maturities and different types of debt on enterprise managers'behavior will also be different.Therefore,this paper chooses debt scale,debt maturity and debt type indicators to test the governance of the stickiness of debt to cost and cost respectively.Physical effects.Marketization process is an important index to measure the external environmental governance mechanism.It combines financial development level and legal system environment.It is an indispensable external governance index to affect the micro-behavior of enterprises.The level of marketization process will significantly affect the role of debt governance.Therefore,this paper explores the effect of debt governance on the cost of enterprises by adding the factor of market-oriented process,in order to enrich and improve the current academic research in this area.This research is based on the data of China's A-share listed companies in Shanghai and Shenzhen Stock Exchanges from 2010 to 2017.The results show that:(1)There are sticky characteristics of listed companies' cost and expenses,and the management cost is the most sticky.(2)When the company's debt ratio is maintained at a moderate level,the debt will significantly exert its restraining effect on the cost and expense.(3)Short-term liabilities significantly inhibited the cost stickiness,but the long-term liabilities did not significantly inhibit the cost stickiness.(4)According to the type,the corporate debt is classified,and it is found that bank borrowing restrains the cost and expense of the enterprise to a certain extent,and further classifies it according to the property rights.It is found that the governance effect of bank borrowing on the cost and expense of the state-owned enterprises is not significant.Bank borrowing in non-state-owned enterprises has restrained the cost and expense of enterprises to a certain extent Commercial credit has a stronger restraining effect on the cost and expense of enterprises than bank borrowing,and in the sample of non-state-owned enterprises,commercial credit has the best inhibitory effect on the cost and expense stickiness.(5)In combination with China's macro-marketing environment,it is found that in areas with high marketization levels,short-term borrowing can exert its restraining effect on cost and expense.Regardless of the market-oriented process of state-owned enterprises,their bank borrowings have no significant impact on the cost and expense.For enterprises with non-state-owned enterprises in the process of high marketization,their bank loans have a stronger effect on the cost and expense.Commercial credit can play a more effective role in restraining the cost and expense of enterprises in areas with higher marketization levels.