Internal Control,Equity Concentration And Resource Allocation Efficiency

Since 2006,the new OTC market has been developing continuously,becoming the most dynamic market subject to realize China's economic restructuring and sustained economic growth,and the main position of innovation and entrepreneurship.However,with the rapid development of the new OTC market,the new OTC market is facing many challenges such as information asymmetry and principal-agent conflict in the internal control level.Improving the quality of internal control can effectively alleviate the information asymmetry and principal-agent problems of enterprises,thus promoting the efficiency of resource allocation.In addition,under different equity concentration,the impact of internal control on resource allocation efficiency is different.Therefore,this paper starts with the analysis of the development of companies in the new OTC market and their internal control and resource allocation efficiency.Firstly,it makes an empirical study on the relationship between the internal control and resource allocation efficiency of companies in the new OTC market,and then makes a specific analysis on the regulatory effect of the equity concentration on the two,hoping to improve the quality of internal control and capital of companies in the new OTC market.The efficiency of source allocation provides evidence support and reasonable suggestions.Firstly,this paper summarizes the research results of scholars.Then,according to principal-agent theory,information asymmetry theory and free cash flow theory,the corresponding research hypotheses are put forward.Finally,based on the data of 4579 companies in the new OTC market before 2017 from 2013 to 2017,this paper uses Richardson model to study the internal control,equity concentration and resource allocation efficiency of companies in the new OTC market.This paper finds four important conclusions through these studies.First,the higher the level of internal control it is,the higher the efficiency of resource allocation.Second,the internal control of the non-state-owned companies in the new OTC market has a stronger positive impact on the efficiency of resource allocation.Third,the improvement of equity concentration of companies in the new OTC market is helpful to promote the positive impact of internal control on resource allocation efficiency.Fourth,the improvement of the ownership concentration of the non-state-owned companies in the new OTC market has a stronger positive impact on the efficiency of resource allocation.This study not only broadens the perspective of resource allocation efficiency research,but also provides empirical basis for decision makers,and puts forward reasonable policy suggestions for promoting the continuous improvement of internal control and improving the efficiency of resource allocation.To improve the efficiency of resource allocation of companies in the new OTC market requires not only optimizing the internal control environment and information disclosure system,but also improving the legal system,strengthening external supervision,broadening the financing channels and optimizing the cash flow control of companies in the new OTC market.