Financing Constraints, Internal Control Quality and Cost Stickiness

Chen, Yufeng; Ma, Yanbai

doi:10.3846/jbem.2021.14878

Cited by 14 publications

(6 citation statements)

References 36 publications

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“…In addition, Jiyeon Lee et al analyzed the data of Korean listed companies from 2000 to 2013, and found that the cost stickiness of the joint CEO structure is lower than that of the single CEO structure [8]. Sun Hejie and Wang Beichen found that there is a common problem of cost stickiness in China 's A-share listed companies:the greater the management power, the more serious the cost stickiness problem.High-quality internal control can constrain management power, thereby reducing the level of cost stickiness [9]. Ruining Guo et al found that the greater the power of managers, the higher the cost stickiness of enterprises, showing a significant positive correlation [10].…”

Section: Management Characteristicsmentioning

confidence: 99%

A Five-year Summary of Cost Stickiness Research

Zhu

2024

HBEM

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In the existing research on cost stickiness, the research on the existence, causes and influencing factors of cost stickiness is more systematic, while the research on economic consequences is more fragmented. As one of the information basis for stakeholder decision-making, it is of great significance to study its latest achievements. This paper reviews the relevant literature on the influencing factors and economic consequences of cost stickiness in the past five years, and summarizes the impact of management characteristics, digitization and intelligence, R & D innovation, earnings management, financing constraints, policies and economic environment on cost stickiness and the economic consequences of cost stickiness on corporate performance, corporate value and corporate risk. On this basis, two suggestions for future research are put forward. First of all, in terms of research content, this paper suggests paying more attention to the micro level. For example, whether managers make decisions to adjust the changes of corporate finance and operating conditions based on the phenomenon of cost stickiness, whether external stakeholders will respond to the stickiness of the enterprise and the economic consequences of cost anti-stickiness. In terms of research methods, the existing literature is mainly based on empirical research, and there are relatively few case studies. It is suggested to further expand case studies to help business practice and academic research.

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Section: Management Characteristicsmentioning

confidence: 99%

A Five-year Summary of Cost Stickiness Research

Zhu

2024

HBEM

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“…Executives' investment options and their amount of discretionary capital are restricted when firms face strict financing constraints [109]. Executives must set financing priorities for projects according to their strategic importance and ensure that limited resources are invested in basic business activities rather than in high-risk and high-cost innovation projects [110,111]. Therefore, financing constraints may limit the significant contributions by foreign TMT members to innovation performance.…”

Section: Heterogeneity Of Firmsmentioning

confidence: 99%

Foreign executives, digital transformation, and innovation performance: Evidence from Chinese-listed firms

Shao,

Lv,

Fan

et al. 2024

PLoS ONE

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This study investigates the effect of foreign executives on firms’ innovation performance and the mediation role of digital transformation in Chinese-listed firms from 2011 to 2021. Our findings indicate that the presence of foreign executives in top management teams promotes firms’ innovation performance by enhancing digital transformation. Further analyses show that foreign executives contribute significantly to improving firms’ radical innovation performance rather than incremental innovation performance. We also examine the moderating effect of negative performance feedback and financing constraints between foreign executives and innovation performance, finding that foreign executives can promote innovation performance particularly in firms with negative performance feedback and weak financing constraints.

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“…From this point of view, financing constraints will strengthen the incentive to intervene in information disclosure. Chen Shen et al (2020) found that when companies face high financing constraints, in order to achieve IPO eligibility, improve credit rating, carry out equity refinancing and obtain necessary external financing, enterprises will adopt the opportunistic behavior of earnings management [8]. On the other hand, Liu Xiaojun and Lu Wenqi (2020) found that equity pledge increases the risk of stock price collapse, and the existence of financing constraints intensifies the positive impact of equity pledge on the risk of stock price collapse [9].…”

Section: Financing Restriction Equity Pledge and The Quality Of Infor...mentioning

confidence: 99%

Financing constraints, equity pledge and the quality of information disclosure

Changlie

Jing

2021

E3S Web Conf.

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The application of big data in enterprise management is more and more common. With the data of A-share listed companies in Shenzhen Stock Exchange from 2014 to 2018, this paper examines the influence of controlling shareholders equity pledge on the quality of information disclosure and the moderating effect of financing constraints in the age of big data. There are two key findings. First, the controlling shareholders will take opportunistic action to reduce the quality of information disclosure so as to maintain the stock price and avoid the loss of control. And the higher the proportion of equity pledged, the stronger the incentive. Second, this phenomenon is influenced by the financing constraints, which means the negative relationship between equity pledge and the quality of information disclosure is more significant in high financing constraint enterprise than in low financing constraint enterprise. The above conclusions provide enlightenment for optimizing enterprise information disclosure in the era of big data.

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Financing Constraints, Internal Control Quality and Cost Stickiness

Cited by 14 publications

References 36 publications

A Five-year Summary of Cost Stickiness Research

A Five-year Summary of Cost Stickiness Research

Foreign executives, digital transformation, and innovation performance: Evidence from Chinese-listed firms

Financing constraints, equity pledge and the quality of information disclosure

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