Research On The Impact Of Cost Stickness On Earnings Robustness Of Manufacturing Listed Companies

Manufacturing industry is an industry that converts means of production into industrial products,tools and daily necessities in order to meet market demand.The manufacturing industry with unreasonable structure and unbalanced development tends to cause cost stickiness and cost anti-stickiness.The company management weakens the Cost Stickiness by optimizing the asset structure and adjusting the size of the company.However,whether weakening cost stickiness is conducive to improving the accuracy of earnings forecast and enhancing earnings robustness is still questioned.Earnings conservatism is an important principle in accounting,and it is an effective guarantee for company managers to provide high-quality accounting information for potential users of financial reports.It requires accountants of enterprises to be cautious in dealing with uncertain economic business,confirm predictable losses and expenses in time,and not contirm uncertain income,so as to reduce managers'chances of manipulating accounting profits.It is not uncommon for managers to manipulate profits by adjusting earnings conservatism,which affects the quality of financial reporting.Strengthening earnings conservatism is of great significance to improving the quality of financial reporting and safeguarding the interests of stakeholders.Cost,as an important part of enterprises,input resources,directly affects the profitability of enterprises.Efficient cost management can increase the net cash inflow of enterprises and bring advantages to the external competition of enterprises.The asymmetric change of business volume and income of listed manufacturing companies in China has a direct impact on financial indicators such as profits of manufacturing enterprises.This paper establishes a relationship model between Cost Stickiness and earnings conservatism,investigates the Cost Stickiness' and earnings conservatism of Chinese manufacturing listed companies from 2013 to 2017,explores the impact of Different Cost Stickiness on accounting earnings conservatism,and observes the degree of earnings conservatism under the influence of cost stickiness.Using empirical analysis,the main conclusions are as follows:Firstly,accounting earnings response to bad news is mo timely than good news;secondly,the Cost Stickiness of manufacturing sub-sectors is different,and the development trend of earnings robustness and cost Stickiness is roughly the same;thirdly,Cost Stickiness has a positive effect on earnings total cost stickiness and total cost anti-stickiness.Sex,stickiness of operating cost,anti-stickiness of operating cost,stickiness of period cost and anti-stickiness of period cost.On this basis,according to the research conclusions,this paper puts forward targeted recommendations,including the government,the Securities Regulatory Commission,listed companies and management,in order to achieve the goal of promoting the manufacturing listed companies to achieve robust earnings.