Study Of Quality Of Internal Control Of Listed Companies Inefficient Investment Behavior

Internal control is becoming a hot spot and the focus of global attention in2010,supporting the development of enterprise internal control guidelines, issued in2008withthe internal control basic norms, work together to build a China enterprise internal controlstandards system, which provides for the construction of internal control guidance. One ofthe intended purpose of internal control is to achieve control of the main operationalefficiency and management effectiveness, which is a study of the economic consequencesof internal control. Currently, foreign scholars for the economic consequences of theinternal control different conclusions, and the existing theoretical studies of rarely involved.Based on this case, the reference existing research results at home and abroad, combinedwith China’s actual conditions, affecting the quality of the internal control of listedcompanies inefficient investment behavior was analyzed.Firstly, the internal control, internal control evaluation theory and inefficientinvestment behavior were reviewed and defined from the theoretical foundation of internalcontrol and inefficient investment, analyzes the impact on internal controls inefficientinvestment, as the relationship between empirical study provides theoretical support.Secondly, the paper summarizes past research ideas, methods and conclusions, based onCOSO report," Basic Standards for Enterprise Internal Control "," ApplicationGuidelines for Enterprise Internal Control " and "Enterprise Internal Control EvaluationGuidelines," to build the internal control of listed companies index (ICI) evaluation ofinternal control. Subsequently, the company discussed the quality of internal control fourof inefficient investment performance: over-investment, lack of investment, the impact ofshort-sighted investment diversification and investment.Multiple linear regression throughempirical testing, etc., obtained internal quality control and over-investment, lack ofinvestment, and significantly diversified investment showed a negative correlation toverify the hypothesis1,2,3; negative correlation between investment and short-sighted notsignificant, assuming4has not been verified. Finally, based on the conclusions of thisarticle, put forward three specific policy recommendations on improving the quality ofinternal control, and analysis of the deficiencies in the research department of this paperpresents prospects for further research.