Research On The Influence Of The Existence And Repair Of Internal Control Defects On Cost Stickiness

Since the supply-side structural reform centered on "de-capacity,de-inventory,deleveraging,cost reduction,and making up for shortcomings" was proposed in 2015,how to reduce the cost of enterprises from the supply side has become an urgent practical problem to be solved.In the path of achieving "cost reduction",curbing the cost stickiness of enterprises has become a key part of it.The existence of cost stickiness not only reduces the resource allocation efficiency of enterprises,but also is not conducive to the long-term stable development of enterprises.The cost of the enterprise will undoubtedly be supervised and constrained by the internal control of the enterprise,and an effective internal control designed and operated can effectively increase the control of cost and expenditure,and play a positive role in promoting the cost reduction and efficiency increase of the enterprise.Most of the existing studies discuss the economic consequences of internal control quality from the perspective of its quality,while few literature studies the existence and disclosure of internal control deficiencies.Based on this,this thesis attempts to explore the differential impact of the existence and disclosure of internal control deficiencies on the stickiness of enterprise expenses,and deeply discusses its impact mechanism,so as to provide theoretical support and experience reference for the construction and high-quality development of internal control of enterprises.This thesis selects the data of listed companies on the main board of China from 2012 to2021 as a research sample for empirical testing,then analyzes the impact of the existence and repair of internal control defects on cost stickiness,and explores its impact path.The following conclusions were drawn from empirical studies:(1)The existence of internal control deficiencies will exacerbate the occurrence of cost stickiness,and agency cost plays part of the intermediary effect.(2)The repair of internal control deficiencies will reduce the cost stickiness,and agent costs work the same.Based on the above conclusions,the following suggestions are made: Enterprises need to pay attention to internal control deficiencies and actively take measures to repair them,strengthen the level of cost and expense management,and improve the management governance mechanism to reduce agency costs.The Country needs to continue to improve the internal control normative system,improve the manager market,and improve the quality of managers.Therefore,these can provide a certain reference for reducing cost stickiness and rational allocation of resources.