Enterprise Life Cycle,Internal Control And Over-investment

Investment is an important activity of enterprises.Effective investment is the source of future cash flow growth.It is the main driving force of enterprise development and value growth.The effect of investment behavior directly affects the realization of business objectives and determines the development prospect of enterprises The However,in the market environment,the enterprise's investment decision-making will be subject to information asymmetry,agency costs and other factors,as managers and managers of resource managers and resources may be invested in the net present value of less than zero on the project,Resulting in excessive investment phenomenon,a serious impact on the efficiency of the use of funds,restricting the survival and development of enterprises based on.At the same time,China's fixed asset investment accounted for an increasing proportion of GDP,but also brought about duplication and overcapacity and other issues,both to reduce the efficiency of social resource allocation,but also increased the financial system of credit risk,to the healthy development of the market economy And the macroeconomic good operation has brought some risks.At present,the transformation and upgrading of our economy are imminent.Supply-side reform has become the focus of attention from all walks of life.With the development of internal control in the field of domestic and foreign research and practice,China's internal control system has gradually completed the construction.In 2008,the Ministry of Finance and other five ministries and commissions issued a "basic norms of internal control",thus,China's internal control system has a unified norms and regulations.2010,"corporate internal control supporting guidelines" issued,marking the government of China's internal control system construction supervision and management from the standard construction to the details of the guidelines,has been further developed and improved.We can found that excessive investment behavior not only seriously affect the company's operating efficiency and to achieve the company's operating efficiency and effectiveness of internal control is the basic norms identified one of the internal control objectives.Based on this,this dissertation puts forward the research hypotheses on the basis of reviewing relevant literature both at home and abroad,trying to verify and explain the following questions:(1)Whether high-quality internal control can inhibit over-investment in listed companies;(2)Whether enterprises in different stages of life cycle lead to overinvestment in agency problems;(3)Whether internal control has different effects on overinvestment in growing,maturing and recessionary enterprises,Is there any inhibitory effect?Subsequent empirical results verify that high quality internal control has an inhibitory effect on overinvestment behavior of enterprises and at the same time it shows the difference of internal control over overinvestment in different lifecycle stages.The research conclusion of this paper has the following two meanings:on the one hand,it enriches the domestic research on the economic consequences of internal control,and provides useful theoretical reference for the relevant research on internal control and over-investment.Secondly,Control the construction of the importance and implementation of the different stages of the life cycle of the sample sample for the enterprise based on their own life cycle to develop a more appropriate internal control rules and regulations provide a reference.