The Study On The Effect Of The Quality Of Internal Control Information Disclosure On China’s Listed Companies’ Inefficient Investment

In 2008, 4 trillion bailout plan from our government has largely driving to the economic growth, but at the same adverse impact on the economy. Such as: overcapacity, inflation and excessive investment addiction and so on.As the current context of the world economic slowdown, how to improve investment efficiency is the key to economic growth. Faced with this situation, as the main force of China’s economic construction- Listed companies how to improve the efficiency of investment, create wealth and meet their development needs is very important.Investment decisions are an important part of a long-term strategic plan, and closely related to enterprise value. Efficiency of investment will directly determine the future prospects for the development of enterprises. In efficient markets,companies can choose effective investment opportunities and make the best choice to enable enterprises to maximize the value. However, the presence of asymmetric information and agency problems often leads to inefficient investment. To a certain extent, inefficient investment caused by enterprise financial crisis, and even lead to reduce the value of the company seriously. Inefficient investment usually occurs in China’s listed companies, how to suppress inefficient investment behavior of listed companies has become the focus of attention of businesses and scholars.Research on Information Disclosure of Internal Control with the in-depth study of the internal control gradually by scholars attention. In 2010, five ministries have jointly issued "Guidelines for Enterprise Internal Control" means that the information disclosure of internal control of listed companies on the road to mandatory disclosure. Stressed the effectiveness of internal control information communication theory, the higher the quality of internal control of information disclosure, the more help alleviate information asymmetries, and help alleviate problems caused by asymmetric information agent, thereby further suppressing inefficient investment behavior. Based on this, the internal control of information disclosure of listed companies as a starting point to explore the quality of its governance role of the non-disclosure of the efficiency of investment.The study concluded:(1) China’s listed companies mostly had the problem of investment’s inefficiency, but the insufficient investment is more common than the excessive investment.(2)The information disclosure of internal control in China is still in the construction phase, the overall low level of disclosure. However, having further improvement trend.(3) Improve the quality of information disclosure of internal control of listed companies help curb excessive investment behavior of listed companies as well as alleviate the insufficient of investment.