The Nature Of Property Right,Management Incentives And Cost Stickiness

The cost management is an important part of the enterprise management.An enterprise how to manage its cost is related to its competitiveness in the whole industry.Therefore,the decision-makers should be prospective to make an enterprise's business strategy on the basis of the long-term development of the company.At the meanwhile,they should manage the cost after considering the actual business volume.The traditional cost theory assumes that the relationship between the cost and the business volume is linear,that is,the cost will increase or decrease in the same magnitude with the change of the business volume.However,the traditional cost theory only considers the influence of the change of the business volume and completely ignores other factors which is an assumption based on the ideal environment.Therefore,the domestic and foreign scholars have found that the relationship between the cost and business volume is not linear,the amount of the cost increases with the business volume increases is more than the amount of the cost decreases with the business volume decreases through a large number of studies.This asymmetry change is called the cost stickiness.The production of "cost stickiness" is a challenge to the traditional cost theory,which enriches the theoretical research in the field of cost management and opens up the advanced theoretical research system.Nowadays,the domestic and foreign scholars have obtained a positive result about the existence of the cost stickiness,but there is still a great controversy about the factors that influence the cost.Even though most scholars found that the managers have an incentive to manage the cost in order to maximize their own interest,which will influence the cost stickiness and make the cost stickiness become a tool that the managers can manipulate.Because the reasonable incentive mechanism is helpful to reduce the managers' self-interest behaviors and cost stickiness so that the enterprise can have a sustainable development.Therefore,according to the existing researches,this thesis will systematically study different management incentives how to effect the cost stickiness based on principal-agent theory,economic person assumption and tournament theory.As a result of reviewing domestic and foreign literatures,this thesis will study the relationship between management incentive and cost stickiness in the manufacturing-listed companies through combining normative research and empirical research.And the management incentive will be divided into Compensation Incentive and equity incentive.This thesis will study the influence of different incentives on cost stickiness.Moreover,this thesis will also study is there any difference about the influence of two different incentives on cost stickiness when the samples are divided into state-owned enterprises and non-state-owned enterprises on the basis of property rights.This thesis is divided into six parts to study the impact of management incentive on the cost stickiness:The first part is the introduction.Firstly,the research background and significance are introduced.Secondly,this thesis puts forward the research ideas and research methods,and further explains the research content,research framework and innovation of this thesis.The second part is literature review.This thesis will review and summarize the related literature at home and abroad mainly from five aspects,including:the existence and cause of the cost stickiness,the influential factors of cost stickiness,management compensation incentive,management equity incentive and property rights.The third part is theoretical analysis and research hypothesis.Mainly introduce the theoretical basis in this thesis which is the basis of the selected topic,including principal-agent theory,the economic person assumption and tournament theory.This thesis analyzes the influence of management incentive on cost stickiness,and puts forward the hypothesis.The fourth part is sample selection and research design.Firstly,the source of sample data is introduced,then three models are designed according to the hypothesis proposed in this thesis,and the relevant variables in the model are defined and explained.The fifth part is the empirical result and analysis.This part includes descriptive statistics,correlation test and regression analysis on the basis of sample data to verify the hypothesis proposed in this thesis.And the detailed analysis of the empirical results is made to get a preliminary conclusion.Finally,cost is divided into sales cost and management cost for further analysis,and considers alternative variable,surplus management,and other factors to make a robustness test so as to provide more sufficient evidence for hypothesis validation.The sixth part is research conclusions and policy recommendations.This thesis summarizes the empirical results to get a reasonable research conclusion.Furthermore,this thesis puts forward relevant management recommendations.And this thesis provides the deficiency of this thesis so as to provide reference for further researches.This thesis chooses the manufacturing listed companies from 2008 to 2017 as sample.Through empirical analysis,this thesis finds that:(1)There is cost stickiness in China's manufacturing enterprises;(2)The management compensation incentive has negative effect on the cost stickiness,and there is an u-shaped relationship between management equity incentive and cost stickiness;(3)Compared with non-state-owned enterprises,the influence of management compensation incentive on cost stickiness of state-owned enterprises is stronger than that of non-state-owned enterprises;Compared with state-owned enterprises,management equity incentive has a stronger influence on cost stickiness of non-state-owned enterprises.The main innovations of this thesis are the following two points:(1)The existing literatures about cost stickiness mostly focused on the existence of cost stickiness and the influence factors.This thesis chooses the perspective of management incentive to study its impact on cost stickiness.In this thesis,management motivation will be divided into compensation incentive and equity incentive to study the two kinds of independent variables how to influence the cost stickiness.(2)This thesis researches the relationship between management incentives and cost stickiness on the basis of different property nature because of the special nature of property rights.It also can give some new ideas of cost stickiness indifferent ownership companies.