Empirical Research On Internal Control And Enterprise Investment Efficiency

Investment has been a hot topic in the field of finance,and becomes hotterespecially when the news media reports about over-investment frequently.Scholarsdebating on enterprise non-efficient investment from different aspects,then prescribedoses of medicine.However,it is regrettable that medicine did not cure disease,thelatest statistics show that enterprise investment efficiency is still not optimistic.Thereason may be that they have not prescribed the right prescription,the fundamentalmethod to cure this disease completely can not be found from outsides.In2008,Chinaissued the"Standard for Enterprise Internal Control",which requires enterprise toimprove their information disclosure quality and operating efficiency andeffectiveness through strengthen internal control construction.In this context,by theopportunity of the continuous improvement of enterprise internal control system,thispaper attempts to find the recipe for radical enterprise non-efficient investment fromthe perspective of internal control.First of all,this paper analysis the enterprise investment efficiency from theperspective of information asymmetry theory,agency theory and behavioral financetheory,meanwhile,we discuss the role of internal control to improve enterpriseinvestment efficiency.On this basis,this paper by use of listed company data,to designempirical model to verify the authenticity of the theoretical analysis.The empiricalpart is divided into two main steps:The first step is a direct test of the relationshipbetween internal control and enterprise investment efficiency,to study whether internalcontrol can effectively improve enterprise investment efficiency;the second stepintroduces accounting information quality to the model,to test whether the accountinginformation quality played a mediating role in the relationship between internalcontrol and enterprise investment efficiency.The result shows that the relationship between internal control and enterpriseinvestment efficiency is significant positive,in other words,high quality of internalcontrol can indeed inhibit the non-efficiency investment behavior,and improveenterprise investment efficiency,and then,with the endogenous test,this result isrobust.At the same time,the research of mediating effect find that accountinginformation quality played a partial mediator effective in the relationship betweeninternal control and enterprise investment efficiency,which shows that internal controlaffect enterprise investment are multipath,at least include accounting information quality.Different from the existing literature,this paper mainly research on the problemof how to improve enterprise investment efficiency from the perspective of theinternal control,and achieves some breakthroughs.This research help us recognise thatenterprise can improve their investment efficiency and the ability of resourceallocation by strengthening internal control construction. Meanwhile, the research ofthe intermediary role played by the accounting information quality describes thatenterprise should strengthening the control environment construction,and financialreporting internal control construction,so that internal control can play a role inreasonable assurance on reliability of financial reporting,and achieve the purpose ofreducing non-efficiency investments by improving the level of information disclosure,reducing the degree of information asymmetry.