Research On The Influence Of Institutional Investor Heterogeneity And Free Cash Flow On Cost Stickiness

In recent years,the rapid development of the market has intensified the competition between companies,and there is less and less room for company profits to rise.Cost is the allowance of enterprise income,so it is very important to control and manage it reasonably.As the most intuitive expression between business volume and cost change,the Cost Stickiness of enterprises can help enterprises optimize their management structure and improve economic benefits through in-depth study.Institutional investors,as an important external supervisory force,have more resources and information that are conducive to business decision-making,thus playing a very important role in improving the governance of listed companies,reducing the agency costs of management,and restraining the Cost Stickiness of listed companies.However,the main mechanism of action is still unclear.Therefore,this paper makes an analysis of this issue and tries to find out how to restrain the Cost Stickiness of listed companies.To explore the impact of institutional investors'heterogeneity on Corporate Cost Stickiness and the intermediary effect of free cash flow.On the basis of literature review,this paper constructs the conceptual model of"institutional investor heterogeneity-free cash flow-cost stickiness" of Listed Companies in China and puts forward corresponding research hypotheses.Based on the actual data of Listed Companies in China from 2013 to 2017,this paper uses statistical software SPSS21.0 to analyze and test the hypotheses proposed in this paper.Through the study,the following conclusions are drawn:different types of institutional investors have different effects on cost stickiness.Firstly,the more pressure-resistant institutional investors hold shares,the more they can restrain the cost stickiness.Secondly,the more pressure-sensitive institutional investors hold shares,the more they can promote the Cost Stickiness of enterprises;thirdly,the more abundant the free cash flow of enterprises,the more significant the cost stickiness;fourthly,the more pressure-resistant institutional investors hold shares,the less the free cash flow of listed companies;fifthly,the more pressure-sensitive institutional investors hold shares,the more free cash flow of listed companies.More;Sixth,free cash flow plays an indirect transfer role through the heterogeneity of institutional investors in the generation of corporate cost stickiness.Therefore,in order to promote enterprises to make scientific and reasonable decisions and restrain cost stickiness,enterprises should focus on optimizing the structure of institutional investors,and from factors such as the control of free cash flow within enterprises,so as to make the management of companies more scientific,and then reduce the Cost Stickiness of enterprises.The conclusion of this paper has a certain theoretical guidance for listed companies to standardize and improve the institutional investors system,strengthen management and control of free cash flow,improve the stickiness of corporate costs and formulate relevant policies.