Internal Governance Of Top Management Teams, Strategic Differences And Corporate Inefficient Investmen

China is in a critical period of transition from high-speed development to high-quality development.To achieve stable economic growth in the context of global economic "shallow recession",Chinese enterprises must expand effective investment and reduce the level of the inefficient in an important position.Inefficient investment has always been one of the research hotspots of corporate governance in academia,but no scholars have studied its impact on inefficient investment from the perspective of the supervisory role of key subordinate executives to CEO.Therefore,based on the internal restraint of key subordinate executives on CEO ’s senior management team,this paper studies the relationship between the internal governance of senior management team and the level of inefficient investment.In addition,the key to the long-term development of enterprises lies in strategy,and strategic differences can have an impact on the level of inefficient investment of enterprises.Therefore,this paper also studies the moderating effect of strategic differences on the internal governance of senior management team and the level of inefficient investment of enterprises.This paper selects Shanghai and Shenzhen A-share listed companies from 2005 to 2021 as samples,and draws the following conclusions by empirical analysis:(1)The stronger the internal governance effect of the senior management team,the lower the inefficient investment level of the enterprise.(2)Compared with under-investment,the internal governance of top management team has a more obvious mitigation effect on over-investment.(3)when other conditions remain unchanged,strategic differences weaken the negative correlation between the internal governance of the executive team and the inefficient investment of the enterprise.(4)Compared with non-state-owned listed companies,in state-owned listed companies,the stronger the internal governance effect of top management team,the lower the level of inefficient investment.(5)Compared with the ten major audit of listed companies,in the non-ten major audit of listed companies,the internal governance of the executive team can better alleviate the level of inefficient investment.(6)Compared with the listed companies with lower proportion of shares held by institutional investors,in the listed companies with higher proportion of shares held by institutional investors,the internal governance of top management team can better alleviate the level of inefficient investment.(7)The impact mechanism test indicates that internal governance of the executive team reduces the level of inefficient investment by alleviating agency conflicts.This paper puts forward the following suggestions:(1)Enterprises should strengthen inefficient investment governance and promote economic transformation.(2)Enterprises should strengthen the construction of top management team and improve corporate governance.(3)enterprises should optimize strategic decision-making,reduce strategic differences.(4)The government should strengthen its regulatory capacity and promote government-enterprise cooperation.(5)the market should standardize the audit service system,improve audit quality.(6)Enterprises should actively introduce institutional investors and strengthen external governance.