Research On Internal Control Quality And Enterprise Investment Efficiency

Investment activities are an important part of modern enterprise financial management.The investment efficiency of enterprises affects their financial status and business performance.Improving the investment efficiency of enterprises is of great significance to the sound operation of enterprises themselves and the development of China's overall economy.The existing research shows that the phenomenon of non-efficiency investment exists in China's listed enterprises,and how to improve the investment efficiency is a common concern of enterprises and relevant departments.Internal control is a process jointly implemented by enterprise managers and all employees,aiming at preventing enterprise risks and improving enterprise operating efficiency.Good internal control can reduce the agency cost of enterprises and alleviate information asymmetry.Therefore,there must be a certain correlation between internal control and enterprise investment efficiency.Current academic research on internal control and corporate investment efficiency are mostly focused on the internal control mechanism and the influence of the efficiency of investment impact on the relationship between internal and external environment,the article continues the practice of predecessors,confirmed the quality of internal control and corporate investment efficiency,the relationship between and further study on the executive pay gap,the influence of social trust relationship with both.This paper first introduces the research background,significance,content and framework,methods and possible innovation points,and then summarizes the domestic and foreign literature on the economic consequences of internal control,the influencing factors of investment efficiency,internal control and investment efficiency.Based on previous studies,this paper introduces the research content of this paper.Second,define the concept of internal control quality and investment efficiency,information asymmetry theory,principal-agent theory,behavioral finance theory as the theoretical basis,the quality of the internal control influence the efficiency of the enterprise investment mechanism is analyzed,and the introduction of executive pay gap,social trust for further analysis,the article put forward the research hypothesis.In this paper,the a-share listed companies in Shanghai and shenzhen from 2013 to 2017 were selected as the research samples,and the regression analysis was conducted after the definition of relevant variables and the establishment of the model.The research shows that:(1)There is A significant positive correlation between the quality of internal control and investment efficiency of enterprises.(2)The executive compensation gap weakens the positive correlation between the quality of internal control and the investment efficiency of enterprises.(3)Compared withcompanies in regions with low social trust level,the positive correlation between internal control quality of companies in regions with high social trust level and enterprise investment efficiency is more significant.After the robustness test,the above conclusion is still valid.After that,the paper summarizes the research conclusions and puts forward relevant Suggestions:(1)Strengthen enterprise internal control construction,improve the quality of internal control.(2)Set a reasonable executive pay gap and improve the executive pay mechanism.(3)Establish and improve credit mechanisms to improve the level of social trust.