The Study Of Relationship Between Enterprise Diversification And Cost Stickiness

In the face of the new normal of China's macroeconomic situation,the central government has put forward the major deployment of supply-side structural reform and put forward the requirement of "three reductions and one subsidy".This year's government work report also requires enterprises to reduce costs.Cost management is an important aspect of enterprise operation.Cost stickiness is one of the hot issues discussed in the field of accounting in recent years.It reflects that the dependency relationship between total cost and business volume is not strictly symmetrical,and the increase of cost when business volume increases is greater than the decrease of cost when business volume decreases to the same degree.Cost stickiness is a common phenomenon,which requires managers to change the traditional view of cost behavior and fully understand the changing rules of enterprise costs and expenses,so as to better manage enterprises and promote the steady improvement of enterprise operating performance.The overall level of the enterprise strategy will affect all aspects of the enterprise,diversification strategy is the current common strategic approach.For the first time,this paper studies the cost characteristics of enterprises implementing diversification strategy from the strategic perspective of the overall level of enterprises.Combined with the relevant theories on the causes of cost stickiness,this paper focuses on the impact of enterprise diversification degree on cost stickiness and its influencing mechanism.This paper according to the principal-agent problems of diversified enterprise and enterprise internal capital market characteristics,combining with the characteristics of cost stickiness,analyzes the degree of corporate diversification on the relationship between cost of viscosity,and on the basis of existing literature of viscous formation theory,three kinds of cost,respectively,"the concept of adjustment costs" bullish "management" and"management concept of agency problems",further analysis of corporate diversification on the relationship between cost of viscous formation mechanism.In this paper,the listed companies in Shanghai and Shenzhen stock market from 2009 to 2017 were used as the research samples,and the hypothesis of theoretical analysis was verified by empirical analysis method.The conclusion shows that the listed companies in China have the characteristics of cost stickiness on the whole,and the increase of enterprise diversification will enhance the level of cost stickiness.The positive relationship between the two is more obvious when the degree of corporate financing constraint is high and the degree of ownership concentration is low,but there is no significant change when the corporate income continues to decline.From the perspective of the formation reasons of cost stickiness,the "adjustment cost view" and "agency problem view" can be used to explain the positive relationship between diversification and cost stickiness,while"managers' optimistic expectations" is not supported to explain this positive relationship.Then,the paper studies the influence path of the management agency problem from a positive perspective,and through the test of the intermediary mechanism,it can be concluded that the increase of diversification will increase the management expense ratio and overinvestment,which will increase the cost stickiness and have partial intermediary effect.These results show that the increase of diversification increases the cost stickiness by reducing the cost of upward adjustment of resources and worsening the agency problem of the management.There is no evidence that the increase of diversification increases the cost stickiness by affecting the optimism of the management.Finally,the robustness test results are consistent with the above results.This paper not only enriches the research on the influencing factors of cost stickiness,but also enriches the research on the economic consequences of diversified enterprises,and innovatively studies the influencing factors and internal mechanism of cost stickiness from the perspective of the overall strategy of enterprises.This conclusion using diversification strategy for the enterprise cost management provides a feasible way of thinking,this paper put forward the corresponding Suggestions to help the enterprises understand the characteristics of the cost of diversified economy and its influence,will cost viscosity control in a reasonable range,better cost management,helping companies cope with risk and realizing the maximization of enterprise value.