Debt Financing Constraints,Earnings Management And Cost Stickiness

The importance of effective cost management to enterprises is self-evident.In the past,we have always followed the classic linear assumption of the interdependence of cost and business volume in management accounting.We believe that regardless of the direction of business volume changes,costs will fluctuate in proportion to changes in business volume..The concept of cost stickiness breaks the original theoretical basis.It believes that the cost is asymmetric when the direction of business volume changes is different.This phenomenon has caused many scholars to think.More people realize that more in-depth and detailed research on costs can help managers improve the efficiency of enterprises' allocation of resources,effectively reduce costs and increase profitability.The resource allocation of the enterprise is directly responsible for the manager,so the cost stickiness is deeply affected by the manager's behavior.Separation of property rights drives managers to implement earnings management based on different motives.Therefore,the cost stickiness presented on the enterprise report data not only includes the manager's need to adjust the resources,but also is largely influenced by the manager's opportunistic behavior.This paper uses the financial data of Chinese listed companies from 2011 to 2017 to study the impact of earnings management behaviors of enterprise managers on the three motives of turning losses,maintaining profits and taking big baths,and adding external governance factors to debt financing.Constraints act as adjustment variables.After theoretical analysis and empirical research,the paper draws the following conclusions:(1)Earnings management behavior to meet the risk of turning losses and maintaining profit will weaken the cost viscous of enterprises;(2)Earnings management behavior based on the motivation of bathing will be enhanced The cost viscous of enterprises;(3)The higher the scale of corporate debt financing,the more obvious the weakening effect of earnings management due to the risk of turning losses and maintaining profit;and the strengthening of cost stickiness based on earnings management based on the motivation of bathing The effect will be suppressed;(4)From the perspective of debt maturity structure,the adjustment effect of short-term liabilities on earnings management and cost stickiness is more obvious than long-term liabilities.