Abstract Based on the quasi-natural experiment of the Shanghai-Shenzhen Stock Exchange’s staggered release of information disclosure guidelines for listed companies by sub-sector, this study empirically tests the impact of disclosure by industry on the stickiness of cost. The difference-in-difference model result shows that the implementation of disclosure policies in different industries has significantly decreased firm’s stickiness of cost. Moreover, this effect is more pronounced in Firms with relatively high operating expense rates, which shows that information disclosure by industry can strengthen information spillover, increase peer pressure among enterprises, and promote backward enterprises to better control expenses. Further analysis shows that disclosure by industry reduces the stickiness of cost by strengthening executive compensation performance sensitivity and increasing analyst tracking.
ZHAO Ling,HUANG Hao. Information Disclosure by Industry and Firm’s Cost Stickiness Based on Peer Effect[J]. Chinese Journal of Management, 2021, 18(12): 1851-.
