The Relationship Between The Localization Of Audit Committee Chairman And Investment Efficiency

The company’s investment behavior is under the influence of both the external financing environment and the internal governance mechanism, along with the development of corporate governance theory and modern finance cross fusion gradually thorough, corporate governance which plays a role in corporate finance activities is to become one of the hot research topic in recent years, especially in the situation that there are two phenomena coexist among the listed companies of our country:the current lack of investment and investment under the condition.Because of these, the research of corporate governance’s role in improving the efficiency of investment is needed and urgent. The audit committee effectiveness, as an important content of corporate governance level, whether it has any association with the investment efficiency? As an important member of audit committee, director of the committee members, do their personal characteristics have any impact on investment efficiency? How can they have impact on the investment efficiency? These are the problems to be solved.The article is divided into five parts:The first part is introduction, mainly introduced the research background and significance, research methods, research content and research frame work; The second part is literature review and the review both domestic and abroad; The third part is the definition and theoretical basis, which expounds the related to the investment behavior of two theoretical basis, the principal-agent theory and information asymmetry theory; The fourth part is the research design including putting forward the research hypothesis, the selection of samples and variable, investment efficiency indexes and model design. One of the important step is that the residuals, for the next stage it will be used to judge whether the investment is insufficient or excessive, Then search the information of chairman of the audit committee among listed companies at the same time search their resumes, and cooperate with the network search in order to judge whether it’s localization, then build the second model to verify its effect on the corporate investment efficiency. The fifth part is the relevant inspection and analysis, mainly according to the results of the investment efficiency model of residual samples, I divided these samples into two parts:overinvestment and underinvestment, separately launches the correlation test, descriptive statistics and regression analysis results, it is concluded that the ’localization of the chairman can curb overinvestment and underinvestment, and then improve the efficiency of investment. The sixth part elaborates the research shortage and outlook, and puts forward some feasible suggestions which may make the company’s management pay more attention to the influences of the audit committee chairman’s personal characteristics on improving the investment efficiency.As the majority of forefathers’ research focus on the influence of audit committee as a whole, mainly on corporate governance and the governance effectiveness,there is little research on the personality of the audit committee chairman, consistent with the listed company registered, the impact on the investment efficiency. The author will start from this side, breaking through the barriers, and make a conclusion that the localization of Chairman can improve the efficiency of investment.