Research On The Influence Of Earnings Management Motivation On Cost Stickiness Of Manufacturing Listed Companies

The traditional theory of cost-state analysis holds that there is a linear relationship between business volume and cost.The premise of the establishment of the cost theory is that the enterprise is in an ideal state.However,in reality,many external factors will affect the management of the company's cost and expenses.Therefore,the traditional cost analysis theory does not explain the change of cost and expenses in the actual operation process.First of all,foreign scholars who questioned the traditional theory of cost behavior found that there is not a proportional change between enterprise cost and business volume.The increase in cost as the volume of business increases is greater than the decrease in cost as the volume of business decreases.This phenomenon is called cost stickiness.Reasonable cost is a key factor in the competitiveness of enterprises.Cost control is also a thorny issue that every business management must face.Mastering the law of cost and cost changes is a prerequisite for making the right cost decisions.At the same time,earnings management is an important means of opportunistic behavior.In the current economic environment of our country,Company managers will generate strong earnings management incentives to achieve their goals,and influence the changes in cost and expenses through earnings management behaviors.If the cost stickiness is affected by the earnings management incentives,then the cost stickiness is the stickiness of the earnings management incentives.However,less scholars pay attention to the motivation of company managers to make resource allocation decisions under the agency problem,and few scholars analyze the cost stickiness from the perspective of different nature of actual controllers.Based on this,this paper takes the earnings management motive as the starting point,and introduces the basic theory of the impact of earnings management motives on cost stickiness,namely principal-agent theory,incomplete contract theory and property rights theory.Under the guidance of theory,the definition and analysis of earnings management,cost stickiness and property rights were respectively carried out;On this basis,this paper selects the 2010-2017 financial data of Chinese manufacturing listed companies as the research object to analyze the impact of different adjustment motives of earnings management on the cost stickiness of listed companies in China's manufacturing industry.And to analyze the extent to which the impact of earnings management incentives on cost stickiness is different when the actual controllers are different in nature.The study found:China's state-owned manufacturing listed companies and non-state-owned manufacturing listed companies all have cost stickiness,and the degree of stickiness is different;When the manager has the profit management motive of meager profit,turn losses and increase losses,it has the effect of weakening and strengthening the firm's cost stickiness;The degree of impact of earnings management incentives on cost stickiness is influenced by the nature of the company's actual controllers.The meager profit motives of managers of non-state-owned manufacturing listed companies have less impact on cost stickiness than state-owned manufacturing listed companies;The incentives for non-state-owned manufacturing listed companies to turn losses and expand losses have a greater impact on cost stickiness than state-owned manufacturing listed companies.This finding helps to understand the mechanism of cost adjustment of enterprises with different ownership characteristics,and provides a reference for studying the differences in the cost viscosities of manufacturing listed companies with different nature of actual controllers in China.