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Financial opening deepening, managerial ability, and corporate cost stickiness

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  • Qin, JunNan
  • Li, Mulin
  • You, Jiarun
  • Zhang, Zerui

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.

Suggested Citation

  • Qin, JunNan & Li, Mulin & You, Jiarun & Zhang, Zerui, 2024. "Financial opening deepening, managerial ability, and corporate cost stickiness," Finance Research Letters, Elsevier, vol. 67(PA).
    • Handle: RePEc:eee:finlet:v:67:y:2024:i:pa:s154461232400816x
    DOI: 10.1016/j.frl.2024.105786
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