Research On The Influence Of Management Power On Cost Stickiness In Manufacturing Enterprises

In recent years,China's economic development has changed from high-speed growth to high-quality growth.Effective and reasonable cost control has become an important means for manufacturing enterprises to seek development.Generally speaking,the cost of an enterprise is positively related to its business volume,but in reality the cost and business volume of an enterprise cannot show simple linear changes.The study found that the increase of expenses when the business volume increases is usually larger than the decrease when the business volume decreases.Scholars define this phenomenon as expense stickiness.At present,China's market economy system is not yet mature,which results in weak binding force on management power and widespread agency problems in enterprises.To explore the causes of cost stickiness,its mainstream view is triggered by agency problem,that is,management will use its own power to manipulate costs in the field of cost management.When the business volume rises,the management will increase its own salary and benefits and expand the resources of control.When the business volume falls,the management is unwilling to reduce its own salary and benefits or reduce the resources of control,resulting in cost stickiness.The existence of cost stickiness is not conducive to the enterprise monitoring the real cost information and reasonably controlling and managing the cost.Internal control forms a process and decision-making framework of mutual supervision and restriction through the distribution of authority.A good internal control system can effectively restrict the power of management,alleviate the agency problem and alleviate the cost stickiness problem.Through literature review,this paper sorts out the documents such as expense stickiness,management power,the influence of management power on expense stickiness,and the influence of internal control on the relationship between management power and expense stickiness,and finds that the research on introducing management power into the field of management accounting is relatively novel.Secondly,based on the principal-agent theory,the "economic man" hypothesis,the information asymmetry theory,the management power theory and other related theories,this paper analyzes the influence of the management power on the cost stickiness and the influence of internal control on the relationship between the twoand puts forward the hypothesis by using the management power index composed of two concurrent positions,equity dispersion and management tenure.Then,descriptive statistical analysis,correlation analysis and multiple regression analysis are carried out on 7862 sample data of listed manufacturing companies in China from 2014 to 2018.The results show that the marketing expenses of listed companies in China's manufacturing industry are sticky.There is a difference between the stickiness of sales expenses and the stickiness of management expenses in China's manufacturing listed companies,of which the stickiness of management expenses is greater than that of sales expenses.There is a significant positive correlation between management power and cost stickiness in Chinese manufacturing listed companies,and the positive effect of management power on management cost stickiness is stronger than that on sales cost stickiness.Internal control has a restraining effect on the positive correlation between management power and cost stickiness.Finally,according to the conclusion of the study,some suggestions are put forward,such as bringing the cost stickiness into the manager evaluation system,improving the internal governance structure of the company to restrict the power of the management,increasing the illegal cost of the management by increasing the intensity of information disclosure,strengthening the construction of the professional manager market in our country,establishing and perfecting the internal control system to strengthen the internal control governance.The innovation of this paper lies in that when studying the influence of management power on cost stickiness,the difference between different costs is deeply considered,and internal control is introduced to study the inhibitory effect of internal control on the relationship between the two.