Equity Incentives,Power Checks And Balances And Cost Stickiness

Manufacturing is China's pillar industry,and manufacturing is facing a stage of rapid growth to high quality.To achieve high-quality manufacturing,how to attract talents,retain talents,promote technology upgrades,and reduce costs are key.And cost control is the key to increase profits and sustainable competitiveness of manufacturing enterprises,but the existence of cost stickiness deviates from the traditional cost-state hypothesis.The deviation of this volume of business and cost changes hinders the cost control of enterprises and becomes The manufacturing industry has increased profits,enhanced competitiveness,and achieved a major obstacle to high-quality development.Cost stickiness itself is a low efficiency of resource allocation.Therefore,how to improve resource allocation efficiency and reduce enterprise cost stickiness has become a hot spot of academic and practical circles.Equity incentive is a kind of equity-based object.When it reaches a certain performance target and has a certain accounting period in the enterprise,it can only achieve the incentives for the exercise.The implementation of the equity incentive policy in the enterprise enables the employees to compare their own interests with the interests of the enterprise.Unity,focus on the long-term development of the company rather than just focusing on immediate interests and improving work enthusiasm.Therefore,the use of option incentives may reduce the viscosity of corporate expenses.Incentives and supervision are mutually reinforcing.Incentive itself is also a kind of supervision.Incentives and supervision are all aimed at improving the enthusiasm of employees and optimizing the efficiency of resource allocation.The mechanism of equity incentives under different supervision and balance is different,and the implementation of equity incentives may be Strengthen supervision and balance and further optimize the efficiency of resource allocation,but few scholars put incentives and supervision under the same framework to study the effects of incentives under different supervisory checks and balances and the promotion of incentives for supervision.This paper selects the 2007-2017 Shanghai-Shenzhen A-share manufacturing listed company as a research sample,discusses the impact of the implementation of equity incentives on the cost stickiness and the role of power checks and balances in the relationship between the two.The results show that:(1)the implementation of equity incentives can significantly reduce the level of corporate cost stickiness;(2)the lower the equity balance,the more significant the effect of the implementation of equity incentiveson the cost stickiness;the shareholding ratio of management to the implementation of equity incentives The impact of stickiness is not significant;the lower the proportion of independent directors,the more significant the restraining effect of the implementation of equity incentives,the reason may be that the independent board of directors increases the cost;(3)the implementation of equity incentives can significantly raise the level of debt constraints,debt constraints in the implementation of equity Incentives play a partial mediating effect on the impact of cost viscous.The conclusions of this paper are still established after the robustness test.This paper explores ways to reduce the viscosity of corporate expenses,and provides a basis for enterprises to implement the positive effect of equity incentives.It is of great significance for enterprises to optimize resource allocation efficiency,improve enterprise competitiveness and enhance corporate value,and implement checks and balances on enterprises.Supervising constraints and improving corporate governance structure also have certain inspiration.