An Empirical Study On The Impact Of Cost Stickiness On Firm Performance In Automobile Manufacturing Industry

The development of China’s automobile industry has been severely challenged by factors such as the country’s economic growth rate,the Sino US trade war,and the country’s Macroeconomic regulation and control.China’s auto market fell in 2018 for the first time in 28 years.In 2018,China’s auto production and sales rate exceeded 100% for the first time,with production and sales falling for three consecutive years from 2018 to 2020.The change of the external market demand causes the internal competition of the automobile industry to increase sharply.While seeking the breakthrough of the external technology market,the price war becomes the driving force of the enterprise competition.Today,with the rapid change of production and sale in automobile market,it is very necessary to study the relationship between the change of enterprise cost and business volume and its effect on enterprise performance.This paper mainly studies the effect of cost-cost stickiness on the long-term and short-term performance of enterprises.Firstly,the research results of cost stickiness at home and abroad are carded.Then it introduces the concept of cost-cost stickiness and enterprise performance,based on transaction cost theory,principal-agent theory and Capacity Utilization Theory,explores the impact of cost-cost stickiness on enterprise long-term and short-term performance.In this paper,we use Weiss model to calculate the cost stickiness of the listed companies in China’s automobile manufacturing industry from 2012 to 2020,then,a regression model is constructed to examine the effects of cost stickiness on the long-term and short-term performance of automobile manufacturing,automobile enterprises and parts enterprises respectively,and it studies the relative methods of improving enterprise performance by adjusting the cost stickiness of automobile manufacturing industry.Finally,according to the empirical results of the research conclusions for the cost management of China’s automotive manufacturing industry to make relevant recommendations.The results show that:（1）The cost stickiness has a significant negative effect on the short-term performance.（2）The cost-cost stickiness has a significant positive effect on the long-term performance.（3）The cost stickiness of the whole vehicle enterprise is greater than the cost stickiness of the parts enterprise.（4）The cost-expense stickiness has no significant effect on the long-term and short-term performance.（5）The cost stickiness has a significant effect on the long-term and short-term performance,which is consistent with the automobile manufacturing industry.（6）The growth of the Enterprise has a significant effect on the long and short performance of both the vehicle enterprise and the component enterprise.