Internal Control, Product Market Competition And Cost Stickiness

In management accounting,cost is a direct reflection of the economic benefits.Accurate data of cost can be used as the basis for pricing and even improve market competitiveness.According to the traditional theory of cost and volume,there is a completely symmetrical relationship between cost and volume.In recent years,foreign scholars have found that the stickiness between cost and business volume is affected by objective factors,so the measurement of cost cannot only be based on traditional cost theory.In order to obtain the dominant position in the market competition and enhance the competitiveness of enterprises,the management and control of costs should not be neglected.In view of this,it is necessary to study the causes of cost stickiness from internal enterprise governance and external market changes to improve the efficiency of expense management.On the basis of reading and sorting out the literature related to cost stickiness at home and abroad.Combining agency theory,behavioral science theory and relevant theories of product market competition for theoretical analysis,in Shanghai and Shenzhen A shares in 2014-2017 data of listed companies as samples,the influence of product market competition and internal control on cost stickiness is empirically tested.Firstly,it analyzes the existence of cost stickiness in China.Secondly,internal control is taken as an explanatory variable to explore the influence of internal control on cost stickiness.Finally,the influence of product market competition on the relationship between internal control and cost stickiness is discussed.The empirical results show that: China's listed companies have significant cost stickiness;there is a significant negative correlation between internal control and cost stickiness.The higher quality of internal control,the more effective it is to restrain the cost stickiness of listed companies.Higher degree of product market competition is helpful to enhance the internal control of the cost of viscous inhibition.This paper discusses the change of cost stickiness from the perspective of macroscopic market and microcosmic enterprise,and gives specific reference opinions according to the empirical results,so as to provide theoretical basis for scientific and efficient control of cost stickiness.