Firm financialization and cost stickness behavior

This paper examines the relationship between corporate financialization and cost-sticky behavior and conducts an empirical analysis by selecting Chinese A-share-listed non-financial firms from 2008 to 2021. It is found that there is a negative relationship between enterprise financialization and cost stickiness behavior; the negative effect of an enterprise's financialization on cost stickiness behavior is mainly manifested in enterprises with good quality internal control and strong compensation incentives, Reasonable and appropriate remuneration incentives can effectively weaken cost-sticky behavior.