| Investment, as one of the major forces to promote economic growth, has made significant contribution for the rapid economic development of our country. However, excessive investment issue has become academic and practitioners in the pursuit of national economic quality and the adjustment of economic structure, and the previous researches for excessive investment mainly focus on corporate governance. As China's "basic norms of internal control" and "internal control supporting the guidelines," are introduced, more attention is paid to internal control in the domestic. In China, however, so far there are no the relevant literatures about the excessive investment from the perspective of the internal control. Therefore, this paper aims to reveal the theory contacts between the internal control and the excessive investment, to testify empirically whether the internal control can effectively inhibit excessive investment behavior, to testify how the five elements of the internal control will respectively impact the excessive investment, and to whether the effect of the internal control on the excessive investment will be different because of the vary of the nature of ownership.Based on sorting out the theories of the internal control and the excessive investment, the theory relationships between them will be constructed in this article. Selected the 2009 Shanghai Stock Exchange A listed companies in the manufacturing Sector as a sample, the relationships between them are testified and found that:(1) The A share listed companies in China manufacturing sector as a whole there is over-investment behavior;(2) The inhibitory effect of internal environment, risk assessment, control activities and information communication to excessive investment is evident. But the effect is not obvious to internal supervision;(3) Internal control can inhibit the behavior of over-investment, and the effect to state-owned enterprises and non-state enterprises has no difference. |
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