Managerial Ability,Internal Control Quality And Corporate Capital Mismatch

Under the new normal of the economy,optimizing the efficiency of capital allocation has become an important way to transform the economic growth pattern.Most of the existing literatures focus on the research of capital allocation from the macro perspective,and seldom go deep into the enterprise to explore the micro capital allocation.The study of micro-capital allocation is of great significance for the in-depth understanding of the operation of enterprise capital and the standardization of enterprise capital allocation.With the rapid development of China's market economy and the diversification of business operation,the operating activities and investing activities of enterprises are no longer the principal and subordinate relationship,and the status of product operation and capital operation is becoming more and more equal.More and more domestic and foreign organizations and scholars recognize that the operating activities and investing activities as an important part of the business activities.From the perspective of the capital allocation of micro level,the capital of the enterprise is eventually allocated in the operating activities and investing activities,if the enterprise high efficiency business activities did not occupy more capital,enterprises don't match the structure and efficiency of capital allocation.This shows that enterprises have different levels of capital mismatch.The existing research has found that the mismatch of enterprise capital will have a negative impact on enterprise value and enterprise performance,but the current research on the factors affecting the mismatch of enterprise capital is relatively rare,which makes the alleviation of capital mismatch lose the scientific theoretical guidance.This paper explores the research on enterprise capital mismatch space,intends to explore business capital mismatch of the key influence factors and related path,on the basis of exploring suitable for micro enterprise capital mismatch countermeasures,hoping to promote enterprise in the capital allocation to make capital to scientific choice,improve enterprise efficiency of capital allocation,reduce the degree of corporate capital mismatch.The separation of ownership and control is a typical characteristic of modern enterprises.The managements have control right in modern enterprises,which has a decisive influence on the behavior of enterprises.The managerial ability can be embodied in enterprise strategy making and decision execution.When the managements conduct capital allocation,different managerial abilities will make different capital allocation decisions.So how does managerial ability affect the degree of corporate capital mismatch? In addition,it may not be a single process formanagerial ability to influence the degree of capital mismatch in an enterprise."In the basic standard of enterprise internal control" issued by China,it is clearly stated that "the managements are responsible for organizing and leading the daily operation of enterprise internal control".In the development and operation of internal control,the managerial ability plays an important role,and there is a close relationship between the managerial ability and the quality of internal control.Internal control through a series of institutional arrangements,the formation of a complete control system of enterprise capital allocation,in many ways affect the enterprise capital allocation decision,it can be seen that the quality of internal control will also have an impact on the degree of corporate capital mismatch.Then,does the quality of internal control have mediating effect in the process that the managerial ability affects the degree of corporate capital mismatch? In order to solve the above questions,this paper comprehensively uses normative analysis method and empirical analysis method to carry out the research.First of all,this paper uses normative analysis method to sort out and summarize relevant literature and theories at home and abroad,and puts forward corresponding hypotheses on the basis of theoretical analysis.Then,the paper selects the data of A-share listed enterprises in Shanghai and Shenzhen from 2012 to2017 as research samples,and uses empirical analysis to test the influence of managerial ability on the degree of corporate capital mismatch and whether the internal control quality has partial mediating role.Furthermore,this paper also studies the influence of managerial ability on the degree of corporate capital mismatch under different property rights.Based on the empirical test results,this paper mainly draws the following conclusions :(1)The managerial ability is significantly negatively correlated with the degree of corporate capital mismatch,that is,the stronger the managerial ability is,the lower the degree of corporate capital mismatch will be.(2)The managerial ability level is significantly positively correlated with the quality of internal control;The quality of internal control is negatively correlated with the degree of corporate capital mismatch.The managerial ability can reduce the degree of corporate capital mismatch by improving the quality of internal control.That is to say,the internal control quality plays partial mediating role when the managerial ability affects the degree of corporate capital mismatch.(3)Compared with state-owned firms,the managerial ability in non-state-owned firms has a more significant impact on the degree of corporate capital mismatch.In this paper,the robustness test is also carried out frommany aspects,and the results are consistent with the research conclusion of this paper,which enhances the robustness of the conclusion.On the basis of the research conclusions of this paper and the status of Chinese enterprises,this paper puts forward the following policy suggestions :(1)Enterprises should change the traditional business concept and pay attention to the capital mismatch problem under the new business concept.(2)Enterprises should fully investigate the ability of managers,and establish an effective management recruitment system.(3)Enterprises should improve the construction and implementation of the internal control system and give full play to the governance role of internal control.This paper provides a new way of thinking for the study of micro-capital allocation,provides new empirical evidence for the study of capital mismatch in enterprises,and provides a useful reference for the improvement of capital mismatch in enterprises,which has certain academic value and practical significance.