TITLE:
Does the Central Government’s Anti-Corruption Campaign Have an Impact on Corporate Cost Stickiness?
AUTHORS:
Shimin Wang
KEYWORDS:
Anti-Corruption, Cost Stickiness, Property Rights
JOURNAL NAME:
American Journal of Industrial and Business Management,
Vol.8 No.10,
October
22,
2018
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.