The enforcement of the Minimum Wage Policy in China and firm cost stickiness

Jiang, Wei; Yao, Wentao; Hu, Yuming

doi:10.1080/21697213.2016.1218631

Cited by 11 publications

(9 citation statements)

References 19 publications

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“…According to this figure, at the beginning of the cost stickiness research (dark blue color), it was carried out in the area of health services, namely reviewing cost management strategies that aim to save costs but are limited by the existence of cost stickiness (Balakrishnan & Gruca, 2008;West, 2003;West et al, 2002). Recent cost stickiness research (in green and yellow) shows areas related to research in the government sector (Bradbury & Scott, 2018;Cohen et al, 2017;Wu et al, 2020), stateowned enterprises (Jiang et al, 2016;Z. Li et al, 2020;Prabowo et al, 2018;Zhong & Gao, 2017) and cost stickiness research in the area of business strategy (Ballas et al, 2020;Lu et al, 2020;Xu & Zheng, 2020).…”

Section: Resultsmentioning

confidence: 99%

“…The second factor causing cost stickiness is pressure from external parties. This includes political uncertainty , social community (Hartlieb et al, 2020), competitive pressures (Cheung et al, 2018;Krisnadewi & Soewarno, 2020;Li & Zheng, 2017), pressure from tax regulations (Xu & Zheng, 2020) protection and minimum wages (Banker et al, 2013;Jiang et al, 2016), regulations related to certain industries, such as rebate rules (Yoon & Moon, 2015), regulatory change in the insurance industry (Belina et al, 2019), CSR (Habib & Hasan, 2019). The next factor is related to corporate governance, including the structure of CEO management (Lee et al, 2019), and company ownership (Chae & Ryu, 2016;Chung et al, 2019;Gu et al, 2020).…”

Section: Figure 1 Development Of Cost Stickiness Research Over Timementioning

confidence: 99%

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Research on Cost Stickiness in International Journals: A Bibliometric Study

2021

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Contemporary points of view have posited that cost behavior is asymmetrical and tends to be sticky. The purpose of this study is to determine the development of cost behavior research, especially about cost stickiness, in reputable international journals. There are 142 articles that meet the criteria which have been obtained from the Scopus database. Bibliometric analysis has been performed with the help of the VOSviewer application. The results of the analysis show that research related to cost stickiness has increased in the last decade. The cost stickiness research consists of the following clusters: 1) the health industry; 2) labor costs; 3) social, environmental and sustainability issues; 4) corporate governance; 5) specific problems in manufacturing; and 6) leadership characteristics. The topics of research on cost stickiness that are still being researched are related to the role of the environmental community, business strategy, and the role of managerial leadership. In this analysis, the authors also show that articles that treat cost stickiness as an independent variable are limited. Based on the results of this analysis, we provide suggestions regarding opportunities for research on cost stickiness in the future.

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Section: Resultsmentioning

confidence: 99%

Section: Figure 1 Development Of Cost Stickiness Research Over Timementioning

confidence: 99%

Research on Cost Stickiness in International Journals: A Bibliometric Study

2021

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“…The manager's knowledge of government regulations regarding company resources also influences resource management deci sions. If the regulation on workers is so strict as to regulate the company's movements in an effort to terminate its workers, there will be a reluctance by the managers to adjust the number and cost of labour (Banker et al, 2013;Bugeja et al, 2015;Golden et al, 2020;Jiang et al, 2016;Liu et al, 2019;Mohammadi & Taher khani, 2017;Via & Perego, 2014;. This includes the pressure to re tain workers for political reasons, especially for companies that have political connections (Prabowo et al, 2018).…”

Section: Resultsmentioning

confidence: 99%

Is Cost Stickiness a Bad Signal From Catur Marga Perspective?

Krisnadewi

Sawarjuwono

2020

jamal

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Apakah Cost Stickiness merupakan Sinyal Buruk dari Perspektif Catur Marga? Penelitian ini berupaya untuk mengupas deter minan asimetri perilaku biaya dari perspektif Hindu Weda, yaitu catur marga. Kajian literatur digunakan sebagai metode. Penelitian ini menyim pulkan bahwa ketika mengambil keputusan, manajer mempertimbang kan belas kasih (bhakti marga), pengetahuan yang dimiliki (jnana marga), upaya untuk berbuat baik (karma marga), dan pengendalian diri atas kepentingan pribadi (raja marga). Perilaku biaya sangat dipengaruhi oleh kebijakan yang dibuat oleh manajer. Kebijakan tersebut terkait de ngan pengelolaan sumber dayanya, terutama ketika menghadapi per mintaan yang menurun.

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“…From the perspective of human capital, the protection of human capital increases the adjustment cost of human resources (Banker et al, 2013). Based on the Minimum Wage Standards and the Labor Protection Law promulgated in China in 2004 and 2008, respectively, previous empirical studies also find that with an increase in the level of human capital protection, the stickiness of company labor costs increases (Jiang, Yao, & Hu, 2016;Liu & Liu, 2014).…”

Section: Cafr 244mentioning

confidence: 99%

Dividend regulation and cost stickiness: evidence from a quasi-natural experiment

Chen¹,

Huang²,

Hu³

et al. 2022

CAFR

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PurposeThis paper aims to examine the effect of dividend regulation on cost stickiness (i.e. the asymmetric change in firm expense between sales increase and sales decrease) and explore the underlying mechanism.Design/methodology/approachBased on the quasi-natural experiment of the Guideline for Dividend Policy of Listed Companies issued by the Shanghai Stock Exchange (SSE) in 2013, the authors employ a difference-in-difference model to investigate the impact of dividend regulation on cost stickiness.FindingsThe authors find that the cost stickiness of treatment group firms has decreased significantly when compared with control group firms after the dividend regulation. Moreover, this effect is more pronounced among firms in lower marketization regions, in lower competition industries and those with less analyst coverage and lower cash flow levels. Further analyses show that dividend regulation reduces the cost stickiness of firms by mitigating agency problems. Finally, the conclusion holds after several robust tests, including controlling for firm fixed effect, propensity score matching (PSM), placebo test and reconstruction of expense variable.Originality/valueThis paper confirms that dividend regulation serves an important role in corporate governance, which reduces firms' agency costs and thereby decreases cost stickiness. The conclusions shed light on the dividend policies of listed companies and capital market regulation in the future.

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The enforcement of the Minimum Wage Policy in China and firm cost stickiness

Cited by 11 publications

References 19 publications

Research on Cost Stickiness in International Journals: A Bibliometric Study

Research on Cost Stickiness in International Journals: A Bibliometric Study

Is Cost Stickiness a Bad Signal From Catur Marga Perspective?

Dividend regulation and cost stickiness: evidence from a quasi-natural experiment

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