Research on the Impact of Severance Compensation Costs on Cost Stickiness of Central State-Owned Enterprise

DOI

10.2991/978-94-6463-835-6_21How to use a DOI?

Keywords

Cost stickiness; Central SOEs; Severance compensation; Severance pay

Abstract

This study examines the mechanism through which severance compensation costs affect cost stickiness of enterprise, grounded in the three foundational theories of cost stickiness and the resource-based view. Utilizing panel data comprising the A-share listed central state-owned enterprises (Central SOEs) and their affiliated subsidiaries from 2008 to 2024, we implement two-way fixed-effects regression model to analyze the relationship between severance compensation costs and cost stickiness. Empirical results robustly demonstrate that severance compensation costs manifest pronounced cost anti-stickiness characteristics in Central SOEs, with costs decreasing more sharply during business downturns than they rise during expansions. Furthermore, this study reveals that severance compensation serves as a strategic tool for fulfilling corporate social responsibility, demonstrating strategic flexibility. These findings contribute to the theoretical understanding of cost management optimization and the evidence-based recalibration of national labor policy frameworks. This study makes dual contributions by both expanding the theoretical boundaries of cost behavior literature and providing actionable organizational-level insights for optimizing employment relationship governance.

Copyright

© 2025 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Download article (PDF)

TY  - CONF
AU  - Meiyi Lv
AU  - Heng Peng
AU  - Yanping Shen
PY  - 2025
DA  - 2025/09/17
TI  - Research on the Impact of Severance Compensation Costs on Cost Stickiness of Central State-Owned Enterprise
BT  - Proceedings of the 2025 3rd International Academic Conference on Management Innovation and Economic Development (MIED 2025)
PB  - Atlantis Press
SP  - 194
EP  - 202
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-835-6_21
DO  - 10.2991/978-94-6463-835-6_21
ID  - Lv2025
ER  -