Equity Restriction,Process Of Marketization And Cost Stickiness

Our manufacturing industry depends on the cost advantage to survive and develop.Therefore,cost management is the core part of enterprises to cope with competition and management at home and abroad,and has always been one of the most concerned issues in academic circles.The traditional cost theory assumes that the cost is symmetrical,which is too idealized and greatly deviates from the actual cost of the enterprise.Due to the influence of agency problems and other factors,the asymmetric change of business resources and business volume may cause the sticky behavior of cost and expense.It is of great significance to discuss how to reduce the level of stickiness to enhance the market competitiveness of enterprises and to promote their healthy and orderly development.Ownership structure is the internal reflection of corporate risk-taking and interest distribution mechanism.It is the basis of corporate governance structure,and one of the most important measurement is equity checks and balances.The principal-agent theory holds that a proper balance of shares helps enterprises to reduce the cost stickiness.At the same time,the effectiveness of enterprise cost management is not only related to the efforts of shareholders and operators,but also influenced by the external environment.In the process of market-oriented reform,market force is an important external institutional factor affecting the relationship between equity balance and enterprise cost stickiness.This article selects manufacturing com panies in Chinese A stock market from 2008 to 2014 as samples to build a model,and do regression analysis using STATA.The empirical results show that the greater the balance between the other large shareholders and the largest shareholder is,the more it can restrain the cost sticky problem of the enterprise.Then the market process index is introduced to examine whether there is a difference in the impact of the equity balance on the enterprise cost Stickiness under the different marketization process.After group study,it is found that the higher the market process is,the greater the effect of the moderate equity balance to reduce the cost stickiness.It shows that the strong force produced by the marketization has a significant regulating effect on the balance of equity and the stickiness of the enterprise cost,which can reduce the cost stickiness.Finally,according to the analysis of the article,and combining with the institutional background of our country,the corresponding policy suggestions are put forward.For example,we should decentralization of large shareholders and establish a reasonable balance of ownership in the process of corporate governance,strengthen the construction of external governance mechanisms,and effectively protect the rights and interests of minority shareholders,reduce government intervention,continue to improve the degree of marketization.