Financial opening deepening, managerial ability, and corporate cost stickiness

JunNan Qin, Mulin Li, Jiarun You and Zerui Zhang

Finance Research Letters, 2024, vol. 67, issue PA

Abstract: This paper empirically examines the impact of managerial ability on corporate cost stickiness among all non-financial listed companies in China's Shanghai and Shenzhen A-shares, following the implementation of the ``Shanghai-Hong Kong Stock Connect,'' a policy for deepening financial opening. The empirical results suggest that managerial ability can significantly mitigate corporate cost stickiness after financial opening deepens, and this conclusion holds true after a series of robustness tests. Mechanism tests show that the mitigating effect of managerial ability on corporate cost stickiness is achieved by improving the internal control levels of enterprises.

Keywords: Financial opening deepening; Corporate cost stickiness; Internal control (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:67:y:2024:i:pa:s154461232400816x

DOI: 10.1016/j.frl.2024.105786

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