Media Supervision,Internal Control And The Non Efficient Investment

Investment promotes the growth of the value of the company,which is the main link of capital flow.Investment decision is also an important part of financial decisions.Compared with the ideal capital market,the real capital market has two basic defects: information asymmetry and agency problem,which lead to moral hazard and adverse selection.With the special institutional background in China,the capital market is not perfect,that causes the enterprise to make the investment to negative NPV behavior-the formation of excessive investment;or abandon the positive NPV projects,resulting in insufficient investment.The inefficiency of investment(negative investment phnomenon,excessive investment phenomenon)has seriously affected the healthy operation of the enterprise.Shareholders must seek effective governance mechanism to solve the problem of inefficient investment caused by the asymmetric information and principal-agent problems.From the perspective of internal and external governance mechanism based on the media supervision and the internal control of Chinese listed companies investment behavior,and to further examine the interaction between internal control and media supervision.In2012-2016 Shanghai A shares companies as samples,path analysis,internal control,and media supervision influence the efficiency of investment.This paper puts forward the control plan;the 3048 sample data collected multiple regression analysis to test the influence of internal control and supervision of the media on the inefficiency investment,and further analyzes the mutual substitution effects between internal control and media.The study draws the following three conclusions: there is a complementary relationship between internal control and supervision of the media,the comprehensive management of two factors can reduce the corporate inefficient investment problem occurred.The secend is the internal control can form the balance mechanism of mutual supervision in enterprises,which can effectively prevent the problem of inefficient investment of listed companies.The third is the media supervision by reputation mechanism and supervision mechanism of company's investment decision-making and implementation,in order to effectively curb the inefficient investment behavior of enterprises.The further considers the positive and negative media coverage of the governance effect.The difference is positive and negative newsreported the effect of governance.The positive reports and can not effectively reduce the probability of enterprise excessive investment phenomenon,while the negative reports can effectively reduce the excessive investment phenomenon occurred at the same time,and also inhibit under investment.In the control of inefficient investment,it is necessary to further improve the internal control of the company,but also make full use of the external supervision of the media.The enterprise should choose the most suitable governance mechanism according to different environment and enterprise's own situation.According to the above theoretical analysis and empirical test results,the government should pay more attention to the supervision of media governance effect and sound internal control system,establish effective legal policy,enterprises should also strengthen their own facilities,strengthen internal control and external governance effect combined with the media,in order to solve the listed company the problem of non efficiency investment to provide a new way of thinking.