Study On The Impact Of Short Selling On Cost Stickness Of Enterprises

Under the policy background of supply-side structural reform in China,reducing the cost of real economy through reform is undoubtedly a comprehensive work with wide impact and great challenges.The existence of "black box" cost in real economy will significantly affect the implementation effect of cost reduction measures.The study of Cost Stickiness will help to reveal the mystery of "black box" of enterprise cost management behavior and better predict enterprise accounting earnings.At present,the research on the causes of Cost Stickiness mainly focuses on three internal factors: agency problem,managers' overconfidence and cost adjustment,while the research on external factors is relatively less.As an important financial tool in China's capital market,short selling not only contributes to the birth of a more efficient capital market,but also affects the real economy and the investment decision-making and prediction behavior of micro-enterprise managers.Therefore,the study of the impact of shortselling on the Cost Stickiness of enterprises is not only conducive to the optimal allocation of enterprise resources,but also provides an important reference for the development of cost reduction measures in the supply-side structural reform.At the same time,it can expand the relevant research on the impact of short-selling on the real economy and help China's financial market environment reform.Using A-share industrial listed firms of China from 2010 to 2017 as the sample,this paper studies the effect of short-selling program on firm's stickiness of cost.The results show that short-selling program can restrain firm's stickiness of cost.And the regression results of the sub sample group show that the restriction on cost stickiness is more significant when the local market is less developed or when the state-owned enterprises have more serious agency problems or when the enterprises have lower external audit quality.Further test shows that the restriction on cost stickiness mainly appears in the cost which does not include the enterprise R&D expenditure.The above results confirm the positive role of Short-trading program to restrain the firm's stickiness of cost,and also provide important reference.