Internal Control, Marketization Process And Corporate Investment Efficiency

As an important research topic in the field of corporate finance and corporate governance,corporate investment efficiency has became a hot issue in academic and practical circles.However,with the continuous growth of the investment scale of listed companies in China,the problem of inefficient investment in Chinese enterprises has also become more prominent.As a means of supervision and management in business operations,internal control is regarded as an effectively way to alleviate the problem of agency and information asymmetry in enterprises.Therefore,it is extremely important for companies which are in a particular external market environment to effectively exert the governance effects of internal control as well as the investment efficiency of listed companies.Firstly,this paper reviews the relevant literature of the influencing factors of enterprise investment efficiency,the impact of internal control on the enterprise investment efficiency,and the impact of marketization process on corporate investment efficiency;Then,it summarizes the information asymmetry theory,principal-agent theory,free cash flow theory,property rights theory and corporate investment theory.Secondly,using these basic theory to analyze the influence of internal control on corporate investment efficiency,the influence of internal control on enterprise investment efficiency under different property rights,the moderating effect of marketization process on the relationship between internal control and corporate investment efficiency,and the influence of the nature of property rights on the moderating effect of marketization process.Thirdly,this paper selects the data from China's Shanghai and Shenzhen A-share listed companies as a research sample in 2011-2017.After that it uses the Richardson model to measure investment efficiency,and it aims to test the influence of internal control on corporate investment efficiency,the influence of property heterogeneity on the relationship between internal control and enterprise investment efficiency,the moderating effect of marketization process on the relationship between internal control and corporate investment efficiency,and the difference in the moderating effect by the nature of property rights through multiple regression analysis.The results show that:(1)Perfect internal control helps to improve the investment efficiency of enterprises;(2)Compared with state-owned enterprises,internal control has a more significant effect on the investment efficiency of non-state-owned enterprises.(3)The faster the marketization process,the more obvious the effect of internal control on corporate investment efficiency;(4)Compared with non-state-owned enterprises,the role of internal control of state-owned enterprises in promoting investment efficiency is greatly affected by the marketization process.Finally,based on the research conclusions,this paper proposes corresponding policy recommendations to help companies improve their investment efficiency.Based on the existing research,this paper introduces the marketization process and the nature of property rights,which provides a new perspective for studying the impact of internal control on the investment efficiency of enterprises.It also try to make some contributes for government supervision and regulations through this paper.