The Empirical Research On The Impact Of Listed Companies’ Internal Control On The Inefficiency Investment

One of the main means for listing Corporation to improve the market value andshareholders to increase asset is investment decision. The premise of the market efficiencyoptimization and no agent conflict, companies can make the most efficient investmentdecisions to enable the company to seek maximum benefits. However, the effectiveness ofcurrent market very limited company, the agency problem is also more obvious, are nonefficiency of investment. To improve the efficiency of investment will help the companyscientific planning of financing and investment activities, make more use of funds morereasonable, so the Surety Company to the greatest extent income generating complete. At thesame time, along with the corporate governance and risk management more deeply and widelyresearch, corporate governance category in include investment management, internal control,utility companies increasingly prominent. So, this paper takes internal control supportingguidelines published application as the opportunity, taking internal control three goals as thestarting point, with China’s listing Corporation for example, focuses on the influence of nonefficiency of investment, internal control, the purpose is through empirical method forinspection of internal control effects on non efficiency investment, so as to improve theinvestment to explore the method and path efficiency.In this paper, with the Shanghai stock exchange A share of the listing Corporation from2010to2012for three years of data samples by means of internal control three major goals tomeasure the effectiveness of internal control, and by means of the principal componentsanalysis method to calculate the comprehensive score of business goals, as the mainindependent variables in the model; secondly, refer to the Richardson (2006) for the efficiencyof investment the model to measure each listing Corporation of non efficiency investmentdegree, as the main dependent variable model. Based on the regression model, descriptivestatistics, the variables of sample multiple linear test and regression analysis, an empirical testof the impact on the internal control of listing Corporation and non efficiency of investment.Finally, the sample according to nature of property rights is divided into state-owned andnon-state-owned holding, once again for the empirical test.The empirical results show that: the internal control of excessive investment and insufficient investment in the listing Corporation were inhibited; three objectives of internalcontrol, operational efficiency, types of audit opinions, illegal punishment and excessiveinvestment and insufficient investment is negatively correlated; in certain conditions,state-owned listing Corporation between internal control and non efficiency of investment thenegative correlation is more significant than non state-owned listing Corporation.