Proceedings of the 2021 International Conference on Financial Management and Economic Transition (FMET 2021)

The Impact of Macroeconomic Environment on Cost Stickiness: Evidence from China

Authors
Tingting Li, Zhenning Zhang
Corresponding Author
Zhenning Zhang
Available Online 18 September 2021.
DOI
10.2991/aebmr.k.210917.033How to use a DOI?
Keywords
Cost stickiness, Macroeconomic environment, GDP, Empirical research
Abstract

Macroeconomic factors affect the cost of enterprises. The article uses the data of Chinese listed companies from 2011 to 2019 to verify that Chinese listed companies still have cost stickiness, and at the same time we empirically tests the impact of macroeconomic factors on the cost stickiness of Chinese listed companies from macro-financial management perspective. Our research indicates, under the circumstance that the situation of overall trend of GDP growth rate is declining, and the growth rate of individual years has increased, the company managers ignore the trend of GDP growth rate, fail to make timely adjustments, and blindly maintain excessive idle resources, inhibiting downsizing, leading to a higher level of cost stickiness. Empirical results prove that macroeconomic environmental factors can increase the stickiness of costs. Our research deepens the explanation of cost stickiness from the macro financial management perspective, we make up for the lack of cost stickiness research, enriches the academic literature of macro financial management, and helps Chinese listed companies reduce cost stickiness.

Copyright
© 2021, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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Volume Title
Proceedings of the 2021 International Conference on Financial Management and Economic Transition (FMET 2021)
Series
Advances in Economics, Business and Management Research
Publication Date
18 September 2021
ISBN
10.2991/aebmr.k.210917.033
ISSN
2352-5428
DOI
10.2991/aebmr.k.210917.033How to use a DOI?
Copyright
© 2021, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

TY  - CONF
AU  - Tingting Li
AU  - Zhenning Zhang
PY  - 2021
DA  - 2021/09/18
TI  - The Impact of Macroeconomic Environment on Cost Stickiness: Evidence from China
BT  - Proceedings of the 2021 International Conference on Financial Management and Economic Transition (FMET 2021)
PB  - Atlantis Press
SP  - 209
EP  - 212
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.210917.033
DO  - 10.2991/aebmr.k.210917.033
ID  - Li2021
ER  -