Research On Management Power,Internal Control And Enterprise Investment Efficiency

The enterprise is the cell of the social economy.The investment activity of the enterprise is related to the development of the enterprise itself from the microscopic point of view,and it is related to the growth of the entire national economy from the macro perspective.The steady development of the economy can ease social conflicts and meet people's needs for a better life.At present,China's GDP has become a medium-speed growth.Under the background of this new economic development,to achieve sustainable development,it is necessary to rationally allocate the resources of the entire society.However,existing scholars' research shows that the listed companies in China are inefficient.The phenomenon of investment is still relatively serious and there is a phenomenon of underinvestment or overinvestment.In modern enterprises,due to the prevalence of separation of powers,the owners of enterprises are far away from the management of enterprises.At this time,the managers of enterprises may use their information advantages to select investment projects that are conducive to realizing their own private interests.This in turn undermines the interests of business owners and their stakeholders,making the company appear to be underinvested or overinvested.In addition,due to the separation of the two powers,the management of the company also has a relatively large power.If the power is too large,it may use the power arbitrarily.If the internal lack of an effective supervision and control mechanism,the management may be for their own private interests.Do not hesitate to damage the interests of shareholders,and put their own interests above the interests of the shareholders of the company.George W.Bush,the former President of the United States,once said: "The greatest achievements humans have made are not the ever-changing science and technology.Instead,they have succeeded in putting the power of the rulers in the cage of the system." This is also true for companies.In order to realize the goals of the company,we must put the power of management into the cage of the internal control system.Internal control is increasingly important for the governance of modern enterprises.Under the above background,it is particularly necessary to study the relationship between management power,internal control and investment efficiency.This article is intended to study the correlation between management power and inefficient investment,as well as the mitigation effect of good corporate internal control on the relationship between management power and inefficient investment.This article first sorts out the related literatures at home and abroad,sort out the current situation of management power and internal control related research,and then put forward the research hypothesis through theoretical analysis.In the empirical research,this paper uses the symbol and absolute value of the residual of the Richardson model to measure the direction and degree of non-efficiency investment of the company,and uses the internal control index of Dibo to measure the degree of internal control of the listed company.The sum of three dummy variables was used to measure the size of management power.Data from 2014-2016 for A-share listed companies on the Shanghai and Shenzhen Stock Exchanges were selected,a regression model was established,and statistical software tests were used to empirically test management authority.The impact of non-efficiency investment,and the role of internal controls in regulating the power of management to influence non-efficient investment in the company.This article attempts to explain the regulatory role,introducing the window-breaking effect in behavioral psychology,illustrating the influence of internal control environment on management power,which is also the innovation point of this article.Through the above research,this paper draws the following conclusion: The greater the managerial power,the more serious the non-efficiency investment of the company;the more perfect the internal control of the company,the more it can inhibit the inefficient investment behavior caused by the management power.