Empirical Study Of Inefficient Investment On Corporate Governance And Internal Control

Investment is the driving force of economic growth, the efficiency of the company’ssuccess is directly related to the level of high-efficiency investments will enable thecompany to remain invincible in incentive competition. Unfortunately, in the real worldbecause of many factors affecting the efficiency of non-investment problem iswidespread. Inefficient investment (over-investment, lack of investment) from the targetenterprise value of the company to maximize the impact of long-term survival anddevelopment of the company, how to effectively inhibit inefficient investment is a hottopic in the academic attention. According to different internal mechanism ofnon-efficiency investments, non-efficiency investment can be classified asnon-institutional investments and technical efficiency inefficient investment into twocategories. This article from the internal mechanism of the non-efficiency of differentinvestments starting to suppress scientific quest inefficient investment more effectivemechanisms and pathways. Corporate governance can ease the company’s proxy issues,improve institutional and high-level decision-making efficiency; internal controls canenhance the operating efficiency and effectiveness, enhance the efficiency of theimplementation of the technical issues. Mechanism of corporate governance andinternal control in suppressing non-efficiency investment is the same, yet so far there isno clear answer. Therefore, corporate governance and internal control can effectivelysuppress inefficient investment, the inhibition efficiency of the institutional investmentsand non-technical non-efficiency of investment whether there are differences, of greattheoretical and practical significance. In this paper, by analyzing both want to be able tosuppress the role of differences in the efficiency of investment in the non-sort out therelationship between corporate governance and internal control and inefficientinvestment, accumulation of empirical evidence for further study.Based on the above considerations, this research aims to enrich inefficientinvestment factors understanding of corporate governance and internal controls to verifythe different mechanisms for different types of non-efficiency of investment, combingthe relationship between corporate governance and internal control, and then examinethe corporate governance and internal controls that may exist in the division inhibitingeffect of inefficient investment. In this paper, combing the relevant research results at home and abroad on the basis of the system, preclude the use of literature research andmultiple regression analysis Combination approach to2009-2013Shenzhen andShanghai of China’s listed companies for the study, from corporate governance andinternal control perspective on how to effectively inhibit the efficiency of investmentbehavior of non-comprehensive and in-depth research.In this paper, the study found that corporate governance and internal control caninhibit the company’s non-efficiency investment, corporate governance system caneffectively suppress non-efficiency investment; internal control can effectively suppressthe non-technical efficiency investments. This article further clarifies the relationshipbetween corporate governance and internal control, and found internal control andcorporate governance in the non-efficiency investment division inhibition effect. Andthe study of this paper test the robustness of the conclusions are basically the same,indicating that corporate governance, internal control for inhibition of inefficientinvestment has strong robustness. This study based on the characteristics of China’slisted companies in the transition period, the internal mechanism of the formation ofinstitutional factors and technical factors inefficient investment analyses, researchcorporate governance, internal effects on non-efficiency of investment control,expanding the existing investment-related research. From the perspective of systemcurrent literature research investment is still rare, this research to improve thecompany’s investment decision-making efficiency, protect the interests of investors,improve relevant laws and regulations, an important guide and reference.