Cost stickiness, corporate risk and management shareholding
Normally, the cost stickiness in enterprises further reduces the efficiency of asset allocation and the accuracy of earnings decision, thus aggravating the risk taking. This paper takes Chinese A-share listed companies from 2009 to 2019 as samples to empirically test the impact of cost stickiness on...
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| Format: | Article |
| Language: | English |
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EDP Sciences
2021-01-01
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| Series: | E3S Web of Conferences |
| Online Access: | https://www.e3s-conferences.org/articles/e3sconf/pdf/2021/29/e3sconf_eem2021_03050.pdf |
| _version_ | 1818937998308278272 |
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| author | Yan Zhang |
| author_facet | Yan Zhang |
| author_sort | Yan Zhang |
| collection | DOAJ |
| description | Normally, the cost stickiness in enterprises further reduces the efficiency of asset allocation and the accuracy of earnings decision, thus aggravating the risk taking. This paper takes Chinese A-share listed companies from 2009 to 2019 as samples to empirically test the impact of cost stickiness on enterprise risk and the moderating effect of long-term incentive mechanism on this impact. The results show that cost stickiness increases corporate risk significantly. Management shareholding further aggravates the impact of cost stickiness on corporate risk. After further analysis, it is found that cost stickiness significantly increases corporate investment risk, meanwhile, cost anti-stickiness also significantly increases corporate risk, and management shareholding also aggravates the impact of cost anti-stickiness. This study further expands the research on the economic consequences of cost stickiness, also provides new ideas for enterprises to control the level of management shareholding to further restrain the degree of cost stickiness. |
| first_indexed | 2024-12-20T06:00:52Z |
| format | Article |
| id | doaj.art-d8bc05b0f84d4e8a8afa692b6ffccc45 |
| institution | Directory Open Access Journal |
| issn | 2267-1242 |
| language | English |
| last_indexed | 2024-12-20T06:00:52Z |
| publishDate | 2021-01-01 |
| publisher | EDP Sciences |
| record_format | Article |
| series | E3S Web of Conferences |
| spelling | doaj.art-d8bc05b0f84d4e8a8afa692b6ffccc452022-12-21T19:50:55ZengEDP SciencesE3S Web of Conferences2267-12422021-01-012530305010.1051/e3sconf/202125303050e3sconf_eem2021_03050Cost stickiness, corporate risk and management shareholdingYan Zhang0Beijing Jiaotong UniversityNormally, the cost stickiness in enterprises further reduces the efficiency of asset allocation and the accuracy of earnings decision, thus aggravating the risk taking. This paper takes Chinese A-share listed companies from 2009 to 2019 as samples to empirically test the impact of cost stickiness on enterprise risk and the moderating effect of long-term incentive mechanism on this impact. The results show that cost stickiness increases corporate risk significantly. Management shareholding further aggravates the impact of cost stickiness on corporate risk. After further analysis, it is found that cost stickiness significantly increases corporate investment risk, meanwhile, cost anti-stickiness also significantly increases corporate risk, and management shareholding also aggravates the impact of cost anti-stickiness. This study further expands the research on the economic consequences of cost stickiness, also provides new ideas for enterprises to control the level of management shareholding to further restrain the degree of cost stickiness.https://www.e3s-conferences.org/articles/e3sconf/pdf/2021/29/e3sconf_eem2021_03050.pdf |
| spellingShingle | Yan Zhang Cost stickiness, corporate risk and management shareholding E3S Web of Conferences |
| title | Cost stickiness, corporate risk and management shareholding |
| title_full | Cost stickiness, corporate risk and management shareholding |
| title_fullStr | Cost stickiness, corporate risk and management shareholding |
| title_full_unstemmed | Cost stickiness, corporate risk and management shareholding |
| title_short | Cost stickiness, corporate risk and management shareholding |
| title_sort | cost stickiness corporate risk and management shareholding |
| url | https://www.e3s-conferences.org/articles/e3sconf/pdf/2021/29/e3sconf_eem2021_03050.pdf |
| work_keys_str_mv | AT yanzhang coststickinesscorporateriskandmanagementshareholding |