Cost Stickiness, Corporate Future Losses and Audit Costs
| Autor: | Qiuling Tang |
|---|---|
| Rok vydání: | 2020 |
| Předmět: | |
| Zdroj: | American Journal of Industrial and Business Management. 10:110-134 |
| ISSN: | 2164-5175 2164-5167 |
| DOI: | 10.4236/ajibm.2020.101008 |
| Popis: | Cost stickiness is one of the operating characteristics of enterprises. In the current research literature on the economic consequences of cost stickiness, there is little literature on the relationship between cost stickiness and the possibility of future losses and audit costs. Based on the sample data of Shanghai and Shenzhen A-share listed companies, this paper studies the correlation between cost stickiness and the possibility of future losses, cost stickiness and audit costs. The study found that the greater the cost stickiness of the enterprise, the greater the possibility that the enterprise will suffer losses in the future; and the audit costs will increase as the cost stickiness of the enterprise increases. Further research finds that, compared with non-state-owned enterprises, the cost stickiness of state-owned enterprises has a smaller impact on the possibility of future losses of the enterprise; under different ownership properties, the effect of cost stickiness on audit costs has no significant difference. After the robustness test, the conclusion still holds. This research conclusion helps companies to see more clearly the impact of cost stickiness on business performance, helps CPAs increase their awareness of the risk of cost stickiness, and helps policy regulators realize the importance and necessity of “cost reduction” in “reducing one supplement” and strengthening implementation. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
|