The Influence Of Internal Control On Enterprise Investment Behavior

Since the 40th anniversary of reform and opening up,China's economy has developed rapidly.As one of the "three carriages" to promote the economic development,enterprise investment has a great influence on the economic development.The efficient investment of the enterprise is especially important,but in reality,these widely exists the inefficient investment,mainly including the excessive investment caused by the agency problem and the insufficient investment caused by the financing constraint,which not only affects the development of the enterprise,but also affects China's economic development.This shows that it is necessary to study the investment behavior of enterprises.At the same time,a large number of facts show that the investment behavior is affected by the quality of internal control.Since 2002,following the international step,our country gradually strengthens the construction internal control,the good internal control can standardize the enterprise management from all aspects,which causes the manager to make the decision better in order to achieve the best investment level,Therefore,this paper mainly studies the influence of internal control quality on the sensitivity of enterprise investment expenditure and investment opportunity,and the inhibition effect of internal control on enterprise inefficiency investment.In this paper,A shares of Chinese listed companies are selected to study the data from 2011-2017;the paper studies the matching degree of investment expenditure to investment opportunities in the direction and the accuracy of grasping investment opportunities in quantity from the perspective of internal control.Specifically,the influence of internal control quality on the sensitivity of investment expenditure and investment opportunity is studied from the theoretical and empirical methods.This paper also discusses the influence of internal control quality on the inefficiency investment of enterprises,For inefficient investment,this paper studies under-investment and over-investment separately.and probes into the similarities and differences under different property rights.Through empirical research,this paper draws the following conclusions:(1)for listed companies in China,the main inefficient investment is insufficient investment;(2)the quality of internal control can significantly affect the sensitivity of investment expenditure and investment opportunities,and enhance its sensitivity;(3)in different property rights,the influence of internal control quality on investment expenditure and investment opportunity sensitivity of enterprises is different,compared with state-owned enterprises,the influence on non-state-owned enterprises is more obvious;(4)the high quality internal control can restrain the inefficient investment of the enterprise,that is,the good internal control can not only restrain the under-investment of the enterprise,but also reduce the over-investment behavior of the enterprise.(5)compared with the state-owned enterprise,The negative correlation between internal control quality and inefficient investment is more significant in non-state-owned enterprises.