Technological Innovation,Board Governance And Cost Stickiness

In management accounting,the traditional cost behavior theory holds that there is a positive correlation between cost and business volume.However,some scholars later found that when the volume of business increased by a certain proportion,the proportion of cost increase was actually higher than the proportion of cost decrease when the volume of business decreased by the same proportion.The academia called this asymmetric change of cost "cost stickiness" As for the factors affecting cost stickiness,many scholars have studied it from the perspectives of self-interest behavior of management,free cash flow of enterprises,corporate governance and so on.Few scholars have studied it from the source of enterprise vitality-technological innovation.Based on the study of the impact of technological innovation on cost stickiness,this paper introduces the variables of board governance to study its impact on cost stickiness,and the moderating effect of Board Governance on the relationship between technological innovation and cost stickiness.This paper mainly consists of six parts: The first part is the introduction,which introduces the research background and significance,research methods and research content.The second part is literature review,which analyses and integrates the research status and main research results of cost stickiness,technological innovation and board governance at home and abroad.The third part is the theoretical basis and research hypothesis.This part mainly defines related concepts and theoretical analysis,and puts forward research hypothesis on the basis of theoretical basis.The fourth part is the research design,including sample data collection methods and selection rules,variable selection and definition,and related model construction.The fifth part is empirical results and analysis.The empirical results are obtained through descriptive statistical analysis,correlation analysis and regression analysis,and the results are tested for robustness.The sixth part is the conclusion of the study and the related suggestions.According to the empirical research and the test results,it draws the conclusion of the study,and puts forward the corresponding suggestions from two aspects:improving the efficiency of technological innovation and standardizing the governance of theboard of directors.This paper chooses A-share listed companies in Shanghai and Shenzhen Stock Exchanges from 2012 to 2017 as the research object,uses panel data,combines literature research and empirical research methods to study the impact of technological innovation,board governance on cost stickiness of listed companies in China,and the regulatory effect of board governance on the relationship between technological innovation and cost stickiness.Firstly,this paper uses ABJ model to verify the existence of cost stickiness in China's listed companies,and further uses regression analysis to draw the following conclusions:(1)There is a positive correlation between technological innovation and cost stickiness,indicating that technological innovation will enhance the degree of cost stickiness.(2)There is a negative correlation between the size of the board of directors,the number of professional committees and the proportion of shareholdings of the board of directors and the cost stickiness,which indicates that moderately expanding the size of the board of directors,increasing the number of professional committees and increasing the proportion of shareholdings of the board of directors can reduce the degree of cost stickiness.(3)There is a positive correlation between the integration of two jobs and cost stickiness,which indicates that the integration of two jobs will enhance the degree of cost stickiness.(4)Expanding the size of the board of directors,increasing the number of professional committees,increasing the share-holding ratio of the board of directors and separating the two positions can weaken the positive correlation between technological innovation and cost stickiness.There are two main innovations in this paper:(1)From the perspective of technological innovation,this paper studies the influencing factors of cost stickiness,and explores more ways for enterprises to reduce cost stickiness.(2)At present,there is no literature on the relationship between technology innovation,board governance and cost stickiness in China.Based on the study of the impact of technology innovation and board governance on cost stickiness,this paper further studies the regulatory effect of board governance on the relationship between technology innovation and cost stickiness,hoping to find a new way for enterprises to improve the efficiency of technology innovation and optimize cost control.Due to the lack of academic ability and limited time,there are also some shortcomings in this paper:(1)There are many aspects in the measurement of corporate board governance level,including quantifiable and non-quantifiable aspects.There is no better way in this paper tostudy those aspects which are not quantifiable or difficult to obtain data.(2)In order to avoid serious collinearity or endogeneity,the control variables selected in this paper are not many.Although the model fits well in the end,it also needs further optimization.