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Cost Stickiness, Ownership Concentration and Enterprise Risk—Empirical Evidence from Chinese Listed Manufacturing Companies
School of Management, Jinan University, Guangzhou, China
- 1 School of Management, Jinan University, Guangzhou, China
American Journal of Industrial and Business Management·Volume 08 (2018)·Pages 163–173·Published 8 January 2018·DOI10.4236/ajibm.2018.81011
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Abstract
This paper examined the impact of cost stickiness on company risk by using the data of listed manufacturing companies of Chinese A-share market from 2008 to 2015. The research shows that the cost stickiness significantly increases the risk level of companies. Ownership concentration, as the core content of corporate governance, would impact the relationship between cost stickiness and company risk level: when the ownership concentration is higher, the impact of cost stickiness on company risk is greater.
KeywordsCost StickinessEnterprise RiskOwnership Concentration
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