Institutional Investors Holding Shares Real Earnings Management And Cost Stickiness

In the market economy environment,cost is the resource that the company needs to invest in daily production and management activities.Cost is the core element of business management and can directly reflect the economic and social benefits of business decision-making.Cost habits,as the core content of management accounting,have recently given high attention to both the theoretical and practical circles.However,the initial cost habit theory clearly states that there is a symmetric linear relationship between cost and income.However,the cost and cost stickiness refers to the increase of the cost when the income of the enterprise increases,which is greater than the decrease of the cost when the income of the equal amount decreases,that is,the asymmetric linear relationship between the cost and the income.In recent years,the hot topic of cost and expense has attracted scholars to conduct in-depth research.There are many literatures that have elaborated on its existence,characteristics and influencing factors.There is also a literature focusing on the relationship between earnings management and cost-cost stickiness,but it is mainly from the perspective of means and motivation of earnings management.As we all know,with the prosperity and development of the market economy,in order to better regulate the market economy,China’s market laws,regulations and guidelines are constantly improving and strict,and at the same time,whether it is market supervision or legal supervision,its supervision is constantly strengthening,management In the management of earnings,the risk of adopting accrued earnings management is increasing,forcing management to choose to construct real transactions to make surplus corrections,that is,real earnings management.Real earnings management mainly refers to managers operating on sales activities,production activities and corporate expenses to increase corporate earnings.These three control methods have different effects on the cost of the enterprise.At the same time,the main reason for the real surplus management behavior is the principal-agent relationship.As an institutional investor with the external supervision role of the company,it can restrain the manager’s manipulation of the surplus to a certain extent.Based on this,this paper studies the impact of different earnings manipulation methods on the cost-benefit of enterprises,and discusses the influence of institutional investors on the two.This paper selects the effective data of China’s Shanghai and Shenzhen A-share listed companies in 2011-2017 to return,empirically examines the existence of cost and expense,and then discusses the different effects of the three earnings manipulation methods on corporate cost stickiness.Among them,sales control mainly refers to the company’s sales promotion through sales promotion or relaxation of credit policy,and increase the sales revenue of the enterprise to make up for the poor surplus level.This will lead to the company’s sales expenses and management expenses not only decrease when the income declines.It will increase,which will increase the cost of the enterprise;production control means that the manager expands the production scale of the enterprise,increases the production of the product,and reduces the unit cost of the product sharing,thereby increasing the profit of the enterprise’s commodity sales,and the surplus of the enterprise is perfectly modified..However,this will cause the cost of the enterprise to fall,but the cost will not decrease,resulting in a sticky phenomenon.The cost control mainly means that when the manager predicts that the company’s surplus will decrease,the company will reduce the cost of the enterprise accordingly,such as lag behind some The expenses incurred this year to modify the financial statements of the company.This is precisely the opposite of sales manipulation and production control.When the revenue is reduced,the cost control will increase the degree of cost reduction,thus weakening the stickiness problem.Then,the empirical verification proves that institutional investors play the role of "supervisory" governance in enterprises,which inhibits the impact of real earnings management on cost stickiness.Finally,alternative variables and group regression were selected for robustness testing and recommendations were made.