How Do Resource Allocation Decisions Affect Company Value?

Based on Makadok’s theory of capacity construction,there are two ways for enterprises to create value: one is endogenous value creation,that is,building enterprise capabilities on the basis of existing resources;The second is the acquisition of exogenous value,that is,to take valuable scarce resources in the industry.Under the supply-side structural reform,improving quality and efficiency through strategic resource distribution has become an important means for enterprises to enhance value,and the concept that production management and organizational management become strategic management activities of enterprises is gradually gaining popularity.On the one hand,in the commodity-oriented resource decision making,internal productive resources are directly embedded into the products to achieve endogenous value creation through objectified input.On the other hand,in the service-oriented resource decision making,it emphasizes the cooperation of all participants,obtains the scarce resources by constructing the inter-enterprise relationship network through the layout of operational resources such as period cost,and improves the resource allocation efficiency among network enterprises to achieve the acquisition of exogenous value.Therefore,under different value creation modes,how will enterprises make resource allocation decisions? What are the cost structure characteristics under different resource allocation decisions? And how to achieve value creation?In strategic resource allocation decisions,cost stickiness is no longer regarded as a mechanical result of cost drivers such as sales volume,but a direct representation of the analytical logic of "resource decision--cost behavior--cost structure".In this thesis,the cost(expense)stickiness index is used to measure the cost structure characteristics of enterprises under different resource allocation decisions,and based on this,the effect and mechanism of enterprise value are discussed respectively.Based on the sample of Shanghai and Shenzhen A-share listed companies from 2009 to 2020,the empirical study finds that cost(expense)stickiness under different resource allocation decisions will exert capacity building effect and resource integration effect respectively,and realize endogenous value creation and exogenous value acquisition respectively.Furthermore,it is found that the capacity building effect of cost stickiness is more favorable in the environment of centralized power allocation and low uncertainty of state-owned property rights and economic policy.On the contrary,it is beneficial to bring into play the resource integration effect of cost stickiness.Based on the perspective of cost stickiness and cost stickiness,this paper opens the black box of value effect exerted by different resource layout,which has certain enlightenment significance to improve the company’s resource allocation decision.The research contributions of this thesis are as follows : First,cost(expense)stickiness index is included in the same research framework to measure the ratio characteristics of cost and expense allocation under different resource allocation decisions of enterprises,and to verify the value effect of cost and expense allocation respectively,which enriches and expands the relevant research on the economic consequences of resource allocation decisions.Second,based on the perspectives of capacity building effect and resource integration effect,this thesis examines the action path under the framework of "resource decision--cost(expense)behavior--value effect",and opens the black box of resource allocation decision affecting enterprise value.Thirdly,we find that operational resources,such as period costs,play a more significant role in resource integration under decentralized,private enterprise and high economic policy uncertainty.On the contrary,the capacity building effect of internal productive resources is more significant.This conclusion can be used as a reference for understanding how different enterprise characteristics and external environment influence micro enterprise behavior.