Empirical Study On The Influence Of Earnings Management On Cost Stickiness In High-tech Enterprises

Cost is the investment of resources in the daily production and operation activities of the enterprise,which will lead to the outflow of economic benefits of the enterprise.It can reflect the decision of the manager of the enterprise on the operation and financial situation,and determines the operation efficiency and financial situation of the enterprise.For now,China's high-tech enterprises have not yet perfected the cost management model system,and the cost control effect is not ideal.Study the impact of managers' surplus behavior on the law of cost and cost changes,and more clearly explain the manager's motivation to the business owners in order to strengthen supervision and prevention;at the same time,our evidence can help investors better understand the company's expenditure changes,ingesting high-quality financial information and accounting surplus information of the enterprise,so that the company's future earnings or cash flow can be more accurately predicted.Domestic and foreign researches on the level of cost stickiness from the perspective of earnings management started late,especially in China,where the research perspective is relatively simple,and the relevant conclusions are more complicated and not applicable to specific industries.This paper selects high-tech industry data that can represent China's technological innovation and market development for research to make up for the vacancy of existing research;at the same time,it explores the two levels of earnings management behavior of high-tech enterprises and compares and analyzes four types of earnings management for the suppression or strengthening effect produced by the cost stickiness level,the relevant theoretical research is enriched with new empirical evidence,and it also provides clues for the business owner to monitor the manager's opportunistic behavior.This paper uses the 2012-2018 annual financial indicator data of A-share high-tech enterprises listed before 2012 in Shanghai and Shenzhen as the original data to conduct an empirical study on the impact of earnings management on cost stickiness.Firstly,systematically sorted out the relevant literature at home and abroad,and based on the principal-agent theory,incomplete contract theory,and transaction cost theory,three hypotheses of the existence of high-tech enterprise stickiness characteristics,managers' preference for two types of earnings management behaviors,and the level of cost stickiness under different incentives are proposed.Then,taking the natural logarithm of the total cost to ratio of the two periods as the explanatory variable,the natural logarithm of the revenue ratio of the two periods of business,the level of two types of earnings management methods,and the four common earnings motivations are the explanatory variables.Logarithm,employee intensity,and continuous loss of dummy variables are controlled.The ABJ model is used for hypothesis testing.The descriptive statistical analysis and difference testing methods are used to preliminary test the distribution characteristics of the variables.A comparative perspective examines the contribution of earnings management to corporate stickiness.The empirical conclusions obtained are as follows:(1)The cost stickiness phenomenon generally exists in the cost decision-making process of China's A-share listed high-tech enterprises.(2)There are two kinds of earnings management behaviors in high-tech enterprises at the same time,but management is more inclined to construct real-life earnings management behaviors to regulate earnings;Further analysis found that more high-tech companies adopt positive accrual earnings management behavior and conduct real earnings management behaviors with controllable production costs as the main means to increase earnings,thereby weakening cost stickiness.(3)Managers of high-tech enterprises have a strong incentive to reverse losses and increase their surpluses.This cost-decision behavior can reduce the level of cost stickiness;managers use downward adjustments to reduce surpluses for the purpose of "bath" and profit smoothing Behaviors have made a "contribution" to the increase in the level of cost stickiness.