The Impact Of Internal Control And Non-efficiency Investment On Firm Performance

With the continuous advancement of the marketization process,the competitive pressure faced by Chinese enterprises is increasing,and the operational risks are getting higher and higher.In order to alleviate the pressure of competition and reduce operational risks,the strategic perspective of each enterprise began to change the internal management mechanism.Therefore,continuously improving the internal control system and strengthening the effectiveness of the implementation of the internal control system have become an important aspect of improving corporate performance.The importance of internal control is mainly reflected in the business management activities of enterprises,It can not only effectively alleviate the problem of principal-agent,Improve operational efficiency,but also positively promote corporate performance.In order to explore why internal control has an impact on corporate performance,this paper introduces a mediator of “non-efficiency investment”.According to the mediating effect research method,the relationship between internal control and enterprise performance,internal control and non-efficiency investment,internal control,inefficient investment and corporate performance were verified.It was finally found that internal control is positively related to corporate performance;Internal control is negatively correlated with non-efficiency investment;Inefficient investment has a mediating effect between internal control and corporate performance,indicating that non-efficiency investment is a factor that affects corporate performance by internal control.The main contents of this article include:The first chapter is an introduction.This part mainly introduces the research background and research significance of this paper,and explains the research content and methods of the article and the innovation of the article.The second chapter is literature review.This part sorts out the literature from three aspects: internal control and enterprise performance,internal control and non-efficiency investment,non-efficiency investment and enterprise performance,and reviews it from two aspects,foreign and domestic.The third chapter defines the related concepts and the theoretical basis.This part mainly expounds the relationship between internal control,non-efficiency investment and enterprise performance from the theoretical point of view.Based on the theoretical analysis and the mediating effect research method,this paper proposes three of the papers.Research hypothesis.The fourth chapter is the research design.This part mainly constructs a linear regression model based on the three hypotheses proposed in this paper,selects appropriate indicators to define each variable,and determines the manufacturing enterprise as the research sample.The fifth chapter is the empirical regression analysis.This part mainly analyzes the selected sample data,and firstly carries out descriptive statistics and correlation analysis.Then the empirical analysis of the model after regression is carried out to prove the relationship between internal control,inefficient investment and corporate performance from an empirical perspective.Finally,the data is tested for robustness to ensure the authenticity and reliability of the empirical results.The sixth chapter studies conclusions,suggestions and deficiencies.This part mainly draws the research conclusions based on the empirical analysis results of Chapter 5,and proposes corresponding policy recommendations based on the research conclusions and the actual situation.Finally,it points out the shortcomings of this paper and ways to improve.