Study On The Influence Of Profitability On Cost Stickiness Of Listed Manufacturing Companies In China

As the global economic environment's changing,the international industrial structure is constantly being adjusted and upgraded.Under such situations,enterprises are not only welcoming opportunities,but also faced with some risk challenges.As a mainstay industry in China,manufacturing enterprises are confronted with many severe situations,such as slow economic growth,the gradual loss of demographic dividend advantage,the improvement of various advanced technologies and the increase in labor costs,how to get more competitive should be considered by the managers of manufacturing enterprises,and cost management system needs to be more detailed and complete.The traditional cost management theory can not explain the problem of high cost of enterprises adequately,while cost stickiness is able to offer some reasons for this phenomenon.At first,this thesis reviews the current research on cost stickiness,profitability,and the theoretical relationship between the two.Secondly,based on the factors which affect profitability,a factor system that may affect the cost stickiness is established in this thesis.Thirdly,an empirical test of the impact of the profitability factor system is conducted,and this thesis tests the robustness of the regression results.Finally,the thesis summarizes the test results and puts forward some corresponding management suggestions.At the same time,this thesis puts forward the shortcomings and the future research direction.This thesis selects the manufacturing companies listed in China from 2009 to 2016 as the sample,the fixed-effect panel data model is used to test the existence of cost stickiness and the impact of profitability on cost stickiness.Based on the adjustment cost theory,the manager expectation theory and agency theory analyze the regression results.The results show that there is cost stickiness in the manufacturing listed companies in China;the profitability enhances the level of cost stickiness,the higher the profitability,the stronger the cost stickiness.Based on the above conclusions,it is recommended to improve the management cost awareness and expected accuracy of managers;expand the company size appropriately;optimize the company's capital structure and shareholding structure.