Study On The Relationship Between Internal Control,corporate Governance And Investment Efficiency

Investment decision is one of the sources of increasing enterprise value and increasing shareholder wealth.Efficient investment behavior plays an important role in the operation of enterprises.Therefore,the problem of investment efficiency has become a hot research topic at present.However,the tight monetary policy in terms of resources and consumer demand,such as the serious impact on the enterprise's investment decision-making,resulting in low efficiency of investment.At the same time,the development of internal control and corporate governance,making the performance of enterprises,including the investment efficiency,significantly improve.Therefore,it is very important to study the effect of internal control and corporate governance on the investment efficiency of the enterprise.In this paper,we study the impact of macro monetary policy on the investment efficiency of enterprises in the context of tight monetary policy,and what kind of measures canbe used to deal with the macro monetary policy,the impact these measures have on the output of the enterprise.This paper analyzes the relationship between macro monetary policy and enterprise investment efficiency in detail,and discussed in depth the impact of internal control and corporate governance mechanism on the model above,and then examine site withthe sample including Shenzhen and Shanghai A-share listed firms in the time period 2007 to 2013.The results indicated that:? The tightening of monetary policy will significantly reduce the investment efficiency,and this effect only occurs in non-state owned enterprises and enterprises in the western region,while the effect of state-owned enterprises and the eastern region is not obvious;? High-quality internal control can improve the investment efficiency of enterprises in a certain extent when monetary policy tends to be tight;?In the tightening of monetary policy,there is a significant positive correlation between the proportion of independent directors,executive compensation,the ownership structure and corporate investment efficiency,ultimate controllers exist significant negative correlation with corporate investment efficiency,the share ratio of the largest shareholder and enterprise investment efficiency turns into the inverted "U" relationship.In this paper,we find that the enterprises can effectively improve the investment efficiency by targeted selection of reasonable measures such as improving the internal control,increasing the proportion of independent directors,increasing the proportion of executive compensation,improving the ownership structure,the share ratio of the largest shareholder.