ABSTRACT
Sticky cost will enhance variety of firms’ performance and uncertainty, does sticky cost list company increase or decrease stock price crash risk? Due to information and expected concerns, investors will consider sticky cost as companies’ capacity and risk. We examine the effect of sticky cost on firms’ stock price crash risk and find a negative association. This association mainly exists in firms with younger CEO, high level of product market competition, lower finance risk, poor performance, state-owned and concentrated ownership. We conclude that the sticky cost reduces the stock price crash risk. The conclusions have theoretical and practical significance for corporate governance and corporate strategy.