Research On The Influence Path Of External Governance Environment And Internal Governance Mechanism On Enterprise Investment Efficiency

The efficiency of corporate investment has always been the focus of corporate governance.A large number of existing studies have proved that the actual investment of enterprises deviates from the optimal investment,and the problem of low investment efficiency is widespread.The existing research on the perspective of internal governance mechanisms has been very rich,but most scholars have studied the impact of internal governance mechanisms on corporate investment efficiency from the perspectives of internal governance mechanisms such as board governance mechanisms,equity structure mechanisms,and executive incentive mechanisms.These studies ignore the interaction among internal governance mechanisms.In addition,the existing studies pay less attention to the exploration of the external governance environment perspective and ignore the interaction between the external governance environment and internal governance mechanisms.This article adopts a structural equation model,examining the impact of external governance environment and internal governance mechanisms on corporate investment efficiency.Based on this,it further explores the differences in the way they affect the investment efficiency of state-owned holding companies and non-state holding companies.The main contents of this paper are as follows:Firstly,reviewing the current literature on investment efficiency,summarizing the problems and deficiencies in the existing research,and getting the research ideas and framework of this paper.Secondly,based on the literature review of the relationship between external governance environment,internal governance mechanisms and investment efficiency,and related basic theories,theoretical analysis was conducted to obtain the research hypothesis.Then,2012-2016 A-share non-financial insurance listed companies were selected as sample companies.The structural equation model was used to verify the research hypothesis.Based on the empirical results,the diffrnence of the external governance environment and Internal governance mechanisms influenceing investment efficiency under the condition of different controlling shareholders was further verified.Finally,according to the previous theoretical analysis and empirical analysis results,the conclusions of this paper are drawn and corresponding countermeasures and suggestions are proposed.The research findings of this paper reveal that:(1)External governance environment and internal governance mechanisms can have a direct impact on the efficiency of corporate investment.(2)The external governance environment can have indirect effects on the efficiency of corporate investment by affecting internal governance mechanisms.First,the external governance environment has a positive impact on corporate investment efficiency by affecting the ownership structure.That is,the lower the government intervention,the higher the level of financial development,and the higher the level of the rule of law,resulting in a lower concentration of corporate ownership,and thus higher corporate investment efficiency.Secondly,the external governance environment has an “incentive effect” through the governance of the board of directors on corporate investment efficiency.That is,the lower the government intervention,the higher the level of financial development and the level of therule of law,and the higher the independence of the board of directors,thereby increasing the efficiency of corporate investment.(3)Internal governance mechanisms can have an indirect effect on investment efficiency through interaction.First of all,the ownership structure through the governance of the board of directors has a negative impact on the efficiency of the company's investment.That is,the increased concentration of ownership will reduce the independence of the board of directors of the company,leading to the expansion of the scale of the board of directors.The board of directors and the general manager tend to unite two positions,thereby reducing the efficiency of corporate investment.Second,the equity structure through the executive incentive mechanism has a negative impact on the efficiency of corporate investment,that is,the higher the degree of ownership concentration,the lower the executive incentive incentives and equity incentives,thus reducing the efficiency of corporate investment.(4)Based on the nature of controlling shareholders,the external governance environment can indirectly affect corporate investment efficiency by affecting the governance of the board of directors of state-owned holding companies.At the same time,it can not indirectly affect corporate investment efficiency by affecting the ownership structure of non-state-owned holding companies.In addition,internal governance mechanisms have a significantly lower impact on state-controlled enterprises than non-state-owned enterprises.