The Study On The Influence Of Beijing-Tianjin-Hebei Listed Companies’ Internal Control On The Investment Efficiency

Business investment decisions has been one of the core issues of the modern enterprise for sustainable development since 1980 s. Inefficient investment disrupt the internal mechanism of the enterprise. As an integral part of management activities, the internal control is generally considered a good means of monitoring and control. Sound and effective internal control is premise to improve the efficiency of investment. Based on this, on the basis of existing research, from the perspective of internal control objectives,study the role of internal control playing in improving investment efficiency.In this paper, under the financial perspective, we analysis the impact of internal control on investment of listed company of Beijing-Tianjin-Hebei region under agency theory. By effectively carrying out internal five goals of internal control to improve investment efficiency levels, and put forward suggestions about the two related healthy development. The method used in this paper are literature research method, Stochastic Frontier Analysis, factor analysis and multiple regression analysis.Firstly, the paper introduces the background and significance, carefully summarizes research status and describes the research content and methods. Then by technical drawings we clear research ideas and discuss the concepts and related theories of internal control and investment efficiency. Base on that, the paper analyzes current disclosure of internal control and investment efficiency, points out the three main problems: the insufficiency of disclosure in related information; the unclear disclosure standards in public reports and the lack of measurable data. Then make recommendations for the problems.Next, this paper selects the 175 listed companies of Beijing-Tianjin-Hebei, and establishes index system of internal control and the efficiency of investment. By factor analysis and stochastic frontier, the paper calculates the internal control index and the value of investment efficiency. Subsequently files related assumptions about internal control factors and the efficiency of investment, according to the SPSS, the results are:there is a positive correlation between the internal control and investment efficiency, andto fulfill asset security objectives and strategic goals has a significant positive correlation with the efficiency of investment; but there is a negative correlation between fulfilling business objectives and objectives of financial reporting and investment efficiency.At last, based on the above research, the paper put forward strategies and recommendations from both internally and externally to improve internal control in order to improve the efficiency of investment.