Research On The Effect Of Earning Management On Cost Stickiness

The level of cost management not only affects the efficiency of the enterprise,but also affects the wealth of the entire society.How to manage and control the cost of enterprises has always been a concern of the government,practice and academia.The traditional cost habit theory holds that the relationship between changes in costs and costs is linear,but some foreign scholars began to question this theory in the 1990 s.Since then,some scholars have proved the changes in costs and costs and business through empirical research.The relationship between quantities is non-linear,and the concept of "stickiness" in economics is used to explain this phenomenon.Subsequent domestic and foreign scholars have interpreted and developed this on the basis of empirical research,which gradually enriched this concept..In recent years,on the one hand,China's economic growth has gradually slowed down,on the other hand,the economies of major countries in the world are also in a state of weakness,resulting in more and more fierce market competition,so a more comprehensive and accurate understanding of cost habits will help companies reduce costs and increase resources Configuration efficiency.As the policy maker and executor of a company's policies,corporate management's behavior decisions and management styles have a profound impact on the company's cost and expenditure habits.Decisions under optimal resource allocation produce deviations,which affect the cost habits.The enterprise's earnings management can be divided into upward earnings management and downward earnings management from the direction of the direction.Different earnings management directions have different effects on the cost and stickiness of costs and specific objects.This article selects the operating data of the manufacturing industry of China's A-share listed companies from 2012 to 2018 as the research sample,and establishes an empirical model and uses multiple regression analysis methods to study the following issues:(1)the existence of the manufacturing company's manufacturing cost stickiness;(2)the earnings management behavior of the manufacturing company Impact study;(3)The impact of different earnings management levels on the cost stickiness;(4)Theanalysis of the sticky difference between operating costs,management fees,and sales expenses.The results of the study are as follows:(1)China's A-share listed company manufacturing industry does exist cost stickiness.(2)The upward earnings management behavior of an enterprise is negatively related to the stickiness of costs and expenses,because the upward earnings management behavior when sales decline will cause the enterprise to adopt stricter cost and expense control,and even delay the confirmation of current cost expenses,resulting in the emergence of cost expenses Anti-stickiness phenomenon: The downward earnings management behavior of a company is positively related to the stickiness of costs and expenses.The reason is the downward earnings management behavior when sales decline.Usually,the company will try its best to reverse the loss in the coming year under the condition that the current surplus cannot be realized.Recognizing cost expenses in the current period has resulted in a further strengthening of the stickiness of cost expenses.(3)When the company adjusts its earnings downwards,the stickiness level of operating costs,administrative expenses,and selling expenses will be successively reduced,and the deeper the enterprise adjusts its earnings,the stronger the stickiness of costs.