Research On The Impact Of Cost Stickiness On Cash Dividend Distribution

Cash dividend is not only a significant way for investors to get returns,but also an inherent requirement for the healthy development of the capital market.Reported earning is a key driver for companies to make dividend payment.As a deduction item of income,cost is the basic determinant of income.Therefore,the company's cost management behavior has an impact on dividend payment.To some extent,cost management behavior is reflected in cost stickiness,which provides clues to reveal the "black box" of resource allocation decision-making behavior of cost management.The distribution of cash dividends is subject to the company's resource allocation.Therefore,this paper studies the economic consequences of cost stickiness from the perspective of cash dividend distribution.It can remind enterprises to reinforce the overall management of resources,which has important practical significance to improve the efficiency of cost management and resource allocation.On the basis of reviewing the previous research on cost stickiness and cash dividend distribution.Applying organization theory and combining the causes of cost stickiness,this thesis analyzes the impact of cost stickiness on cash dividend distribution.Applying principal-agent theory and information asymmetry theory,this paper analyzes the influence of property right on the relationship between cost stickiness and cash dividend distribution.On this basis,A-share listed companies in Shanghai and Shenzhen from 2012 to 2017 are taken as the initial research samples.After selecting the relevant variables and strict data screening,the above analysis was empirically tested by constructing a multiple regression model.The research results show that cost stickiness is a benign redundancy of enterprise resources and an embodiment of effective cost management.It helps companies to avoid risks,improve performance,and stabilize cash flow.As the cost stickiness increases,the company's cash dividend distribution increases.Compared with state-owned enterprises,the cost stickiness of non-state-owned enterprises has a stronger promotion effect on cash dividend distribution.Due to special circumstances such as more policy burdens and more serious agency problems,the role of cost stickiness cannot be effectively played in state-owned enterprises.Further research under non-state-owned property rights has the following findings.The cost stickiness exhibited by companies with more serious agency problems is mostly due to the self-interest behavior of managers,rather than the benign redundancy formed after taking into account the future economic benefits of the company,which cannot have a positive impact on the cashdividend distribution.The high level of marketization makes the enterprise in a good external governance environment,which is convenient for external investors to supervise and restrict the enterprise.This effectively suppresses the opportunistic behavior of the management,reduces the "inferior" cost stickiness caused by agency problems,and enables the "benign" cost stickiness to play its role in promoting the distribution of cash dividends.Finally,based on the robustness test,the paper makes three suggestions according to the above conclusions.Respectively,it is to strengthen the understanding of cost stickiness,establish and improve the supervisory mechanism of management and increase the supervision of state-owned enterprises.The research of this paper expands the field of vision of the research on the influencing factors of cash dividend distribution.Going deep into the cost decision-making level,integrates the company's cost management decision-making behavior and profit distribution decision-making behavior into the same framework,and comprehensively considers the enterprise's strategy and resource decision-making behavior.It reveals the influence of cost management behavior on resource arrangement and investment and financing strategy selection in a more in-depth manner,which is helpful to play the role of capital market supervision on enterprises,and provides data support for improving the efficiency of cost management and resource allocation.The paper has 1 picture,10 tables,and 150 references.