Cost Stickiness,Organization Redundancy And Corporate Performance

Under the background of fully implementing Made-in-China 2025 and deepening supplyside structural reform,China's manufacturing industry is facing enormous challenges on how to achieve industrial upgrading.In the case of a sharp rise in human and resource costs,how to control costs and allocate resources reasonably in the process of industrial upgrading is an urgent problem to be solved in the daily production and operation of manufacturing industry.The traditional cost habit theory holds that there is a linear relationship between enterprise costs and business volume,regardless of the direction of business volume changes.However,previous studies have shown that the marginal increase of cost with the increase of business volume is greater than that with the decrease of business volume,and this phenomenon is called cost stickiness.In order to study the impact of cost stickiness on corporate performance and the role of organizational redundancy as an intermediary variable,this paper first summarizes the relevant literature on cost stickiness,organizational redundancy and corporate performance,and proposes five relevant research hypotheses based on relevant theoretical analysis.Secondly,the ABJ model is used to empirically test and analyze the existence of cost stickiness of the main board manufacturing industry and its listed companies.Finally,the cost stickiness value calculated by Weiss model is taken as an independent variable.Based on the data of Shanghai and Shenzhen A-share manufacturing listed companies from 2012 to 2017,the relationship between cost stickiness,organizational redundancy and corporate performance is studied by hierarchical regression method,and further analysis is carried out by grouping according to the nature of property rights.This paper draws the following conclusions:(1)Cost stickiness has a significant role in promoting organizational redundancy,that is,the greater the degree of cost stickiness,the more organizational redundancy.(2)Cost stickiness has a significant inhibitory effect on corporate performance,that is,the greater the degree of cost stickiness,the worse the performance level of the company.(3)Organizational redundancy has a significant inhibitory effect on corporate performance,that is,the more organizational redundancy,the worse the corporate performance.(4)Organizational redundancy partially mediates the impact of cost stickiness on corporate performance.(5)Further grouping tests according to the nature of property rights show that the intermediary role of organizational redundancy in cost stickiness and corporate performance is mainly reflected in state-owned holding enterprises,but not in non-state-owned holding enterprises.Based on the analysis of the possible reasons for the above research conclusions,combined with the national implementation of the full implementation of "Made in China 2025" to further promote the supply-side structural reform background,the following suggestions are proposed: Firstly,for listed manufacturing companies in industrial upgrading,we can reduce the cost stickiness of enterprises by retaining their core business and assistant business by renting fixed assets,outsourcing and cooperation,etc.,so as to improve the internal operation efficiency of enterprises.Secondly,when selecting and appointing senior managers,state-owned holding enterprises should consider qualifications such as educational background,majors and work experience to improve their management level and resource allocation ability.Thirdly,for the state-owned holding enterprises with cost stickiness,we should strengthen the incentive and supervision to the management,restrain the self-interest of managers,improve the utilization efficiency of idle resources,and promote the realization of maximizing the value of enterprises.