Author(s)

Le Liu, Chaoyang Zhou

Corresponding Author

Le Liu

ABSTRACT

Based on the related data from 2008 to 2016 in China's A stock market, this paper empirically studies the relationship between product market competition, monetary compensation of executives and cost stickiness. The results show that the monetary compensation of executives plays a positive role in restraining cost stickiness, and the competition degree of product market has a constraint on the subjective decision-making behavior of executives. The conclusion is helpful for executives to fully grasp the competitive situation of product market, establish a reasonable executive compensation system and weaken the cost stickiness.

KEYWORDS

Cost stickiness, Monetary compensation of executives, Product market competition