| Issue |
E3S Web Conf.
Volume 253, 2021
2021 International Conference on Environmental and Engineering Management (EEM 2021)
|
|
|---|---|---|
| Article Number | 03050 | |
| Number of page(s) | 5 | |
| Section | Environmental Equipment Engineering Management and its Technical Application | |
| DOI | https://doi.org/10.1051/e3sconf/202125303050 | |
| Published online | 06 May 2021 | |
Cost stickiness, corporate risk and management shareholding
Beijing Jiaotong University, Beijing, China
Corresponding author: 19120683@bjtu.edu.cn
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.
© The Authors, published by EDP Sciences, 2021
This is an Open Access article distributed under the terms of the Creative Commons Attribution License 4.0, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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