Author(s)

Pei Pan

Corresponding Author

Pei Pan

Abstract

Based on the ABJ model, we select the manufacturing enterprises listed on the main board of Shenzhen A-shares as the sample to test the relationship between accounting information transparency and cost stickiness. The results show that the accounting information transparency can alleviate the cost stickiness in manufacturing enterprises. Further research show that the transparency of accounting information has a more significant effect on cost stickiness in manufacturing enterprises with high concentration of equity and high asset-liability ratio. This finding provides suggestions for shareholder governance, which can enhance the external supervision ability by improving the accounting information transparency to alleviate the problem of cost stickiness.

Keywords

Accounting information transparency, Cost stickiness, Managers self-seeking behavior, Agency cost