Study On Marketalization,Intel Control And Inefficient Investment

From the national macro-economic point of view, the investment activity is to promote economic growth, "Troika" one, from the enterprise micro-economic point of view, the investment activity is one of the three co re activities of financial management, corporate investment activities affect even national aspects. Therefore, investment management has been an important concern of the industry, practice how to determine the optimal investment scale to avoid inefficient investment in order to improve the efficiency of investment, many scholars from different perspectives were discussed research. Mainstream enterprise investment theory was first pioneered by Tobin, in efficient markets and information symmetry assumptions, corporate investment and financing activities, internal management does not matter, depending on market demand. The reality on the contrary, in the case of asymmetric information and agency exists, companies often inefficient investment activity occurred. In theory, a good internal control have an impact on corporate investment activity, quality of internal controls in favor of the management due to the pursuit of personal interests to the detriment of the interests of business activities of supervision a nd restraint, good internal controls external representation of high-quality accounting the quality of information that can guide managers and corporate investors optimal investment activities, reduce inefficient investment activities. The internal control activities and they often market process business-related area, the lower the market-oriented process where the greater government intervention in the market, official government officials for personal advancement forcing companies to occur unwanted inves tment activities, leading an enterprise underinvestment and overinvestment.From the perspective of the market process to study the relationship between the internal control and corporate inefficiency between, and the following conclusions: Firstly, the internal control can be effectively suppressed enterprises inefficient investment activities. Both the higher level of internal control, can effectively reduce the efficiency of non-investment activities. Second ly, the market process, the higher place of inefficient investment activity inhibition of internal control is more significant, the lower the market process where internal controls inhibition of inefficient investment was not significant.According to study results, the following policy recommendatio ns: Firstly, enterprises should strengthen internal control awareness, a sound internal control system, promote internal control in corporate investment decisions supervisory role. Internal controls can effectively suppress enterprises inefficient investme nt. Secondly, the market should accelerate the process, improve the level of the market, improve market supervision for the optimization of the role of business investment, the only way to more efficiently promote investment efficiency.