Internal Control,Efficiency Of Investment And Enterprise Value

In 2002,as the SOX Act(Sarbanes Act)promulgated,internal control was established as one of the four cornerstones of corporate governance.In 2014,as implementation of the internal control standard system in China,the study of the economic consequences of internal control,especially based on the compulsory background,became the hot topic in the community.The economic consequences of internal control can be directly attributed to the maximization of the enterprise value,and the internal control also affects the investment decision(efficiency of investment)of the enterprise.However,in recent years,it is the phenomenon of inefficiency investment in China,and the inefficiency investment will also be harmful for the value of the enterprise.In this context,this thesis focuses on the impact of internal control on enterprise investment efficiency and enterprise value,and further studies the cooperative effect of internal control and investment efficiency on enterprise value,thus testing the economic consequences of internal control to a certain extent puts forward the corresponding policy recommendations.The thesis combines theoretical with empirical research.In the theoretical research defines the concept of internal control,investment efficiency and enterprise value,and explains the principal agent theory,information asymmetry theory,internal control economic consequences theory and the hypothesis of effective market theory,and analyzes the impact of internal control on investment efficiency from the perspective of internal control economic consequences,and the effect of internal control to the enterprise value.The two combinations of internal control and investment efficiency have cooperative effects on enterprise value.The internal control quality is measured by the DIB internal control index.The residual error calculated by the Richardson expected investment model represents inefficiency investment,and TobinQ represents the enterprise value,constructs the model,and uses descriptive statistical analysis,regression analysis and multiple linear regression analysis to test hypothesis.Firstly thesis tests the impact of internal control on investment efficiency,and then examines the direct impact of internal control on enterprise value,and finally test the cooperative effect of internal control and investment efficiency on enterprise value.Through the research,it was said that there is a significant positive correlation between the internal control and the enterprise value,and there is a negative influence between internal control and ineffective investment,and the further analysis of the regression results shows that the internal control and the investment efficiency can be combined together to make a cooperative effect on the enterprise value.Finally,according to the empirical results of this thesis,and further suggestions are put forward that the listed companies should attach more importance to the construction of internal control environment,make correct investment decisions to improve the value of the enterprise.