Analyst Site Visit And Cost Stickiness

In management accounting,the traditional cost behavior means that the marginal change of the cost is in the same direction as the change of the business volume,that is,the cost is symmetrical with the change of the business volume.However,the research finds that the change of the cost is nonlinear with the change of the business volume.Current research suggests that the principal-agent problem is one of the reasons for the cost stickiness,and analyst tracking can reduce corporate agency questions problem,thereby alleviating cost stickiness.However,analysts use their expertise to interpret some of the public information professionally,under the hypothesis of efficient markets,cannot provide investors with valuable research reports very effectively.To enhance the value of research reports,the role of private information collection is becoming more and more prominent,and analyst site visit is an important way for analysts to obtain company private information.Therefore,this thesis studies whether analyst site visit will have an impact on enterprise cost stickiness,and further explores the mechanism of field research affecting enterprise cost stickiness.The conclusion of this thesis not only extends the economic consequences of analyst site visit and the literature on the impact of cost stickiness,and it is helpful for the relevant organizations to pay full attention to the positive role of the analyst site visit activities of securities analysts in optimizing the allocation of enterprise resources,and to promote the management of enterprises to actively eliminate or update those old resources that do not meet the requirements of the development of the new era in a timely manner according to market changes,reduce the cost stickiness,optimize the way of resource allocation,and help enterprises to better transform and upgradeThis thesis uses the "enterprise-annual" level data of Shenzhen Stock Exchange A-share listed companies in 2009-2017 to explore the impact of analyst site visit on cost stickiness based on the causes of enterprise cost stickiness.The study found that analyst site visit can reduce cost stickiness,and there are three possible mechanisms:first,to ease the financing constraint mechanism,analyst site visit through the use of information transmission effect,ease the enterprise financing constraints,increase the ability of enterprises to adjust costs,reduce enterprise cost stickiness;second,analyst site visit by helping analysts to gain information advantages and master more industry knowledge.The accuracy of earnings forecast,reduce the management optimistic expectation deviation,ease the cost stickiness of the enterprise;third,the analyst site visit through exerting the external supervision effect,supervise the opportunistic behavior of the management,alleviate the cost stickiness of the enterprise.The results of the robustness test show that the above conclusions are reliable.