Abstract
This paper starts with the anti-corruption campaign of the 18th National Congress of the Communist Party of China (CPC), adopts the empirical method to study whether and how the anti-corruption campaign of the central government influences the cost stickiness of enterprises. And the paper further studies whether the anti-corruption campaign has different impacts on enterprises with different property rights. The results show that the cost stickiness of listed companies decreases significantly after the anti-corruption campaign. Compared with non-state-owned enterprises, the cost stickiness of state-owned enterprises weakened less after the anti-corruption campaign started. The research results of this paper show that anti-corruption can restrain the rent-seeking behavior of enterprises and make them apply more resources to normal production and operation activities.
Highlights
China has entered the fundamental transformation stage of economic growth since 2012, bidding farewell to the high-speed growth that has lasted for more than 30 years
This paper starts with the anti-corruption campaign of the 18th National Congress of the Communist Party of China (CPC), adopts the empirical method to study whether and how the anti-corruption campaign of the central government influences the cost stickiness of enterprises
This paper mainly studies whether and how the anti-graft actions of the 18th national congress of the communist party of China (CPC) affect the cost stickiness of enterprises, explained by changes in sales and management expenses (SGA), explained by changes in operating income (Rev), whether the 18th national congress of the communist party of China has been held, and the nature of property rights of listed companies
Summary
China has entered the fundamental transformation stage of economic growth since 2012, bidding farewell to the high-speed growth that has lasted for more than 30 years. In the new normal of the China’s economy, enterprises are faced with the dual pressure of slowing down the growth rate and structural transformation. It is of great significance for enterprises to improve efficiency, regulate the use of expenses, and improve cost efficiency, so as to save internal costs. The anti-corruption campaign has cracked down on the political ties between enterprises and the government established through rent-seeking, greatly blocking the rent-seeking channels of enterprises, reducing their resources for rent-seeking activities Such resource input is often included in the cost of the enterprise in the form of expenses, resulting in an increase in the proportion of non-production costs. From the perspective of enterprises, this paper will take the data of China’s A-share listed companies from 1994 to 2015 as the sample to test whether and what impact the anti-graft actions of the 18th CPC national congress have on the stickiness of enterprise sales and management expenses
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