Management Shareholding?Internal Control Quality And Inefficient Investment

At present,the economy of our country is in an important period of transformation and upgrading.It has changed from the traditional extensive development to intensive development giving more attention to scientific planning and sustainable development.Promote energy-saving emission reduction,eliminate O utdated production capacity,industry re-layout,these macro-policies affect the business investment decisions.2011-2015 is the crucial stage of our country's 12 th Five-Year Plan.How the investment situation of enterprises is and how to improve the investment efficiency of enterprises are the key points in this paper.This paper firstly reviews the relationship between the management shareholding and inefficient investment,the quality of internal control and inefficient investment,as well as the relationship among the three.Based on the principal-agent theory and the information asymmetry theory,this paper proposes the research assumptions and the research models.Then,using the data of listed compa nies from 2007 to 2016 as a sample and using Richardson(2006)as a model,the sample is divided into overinvestment group and underinvestment group,to study the relationship among management shareholding,internal control and inefficient investment influences.The empirical results show that:(1)Management shareholding ratio is significantly negatively correlated with overinvestment and underinvestment,and management equity incentive has a significant inhibitory effect on inefficient investment.(2)The internal control quality and the regression coefficients of the two sets of sample data are both negative and significant at a certain level of confidence.It can be seen that the more perfect the internal control system,the higher the investment level of the company.(3)When management shareholding and internal control work together on under-investment and over-investment,this comprehensive effect will be significantly strengthened,and it will be better able to curb inefficient investments.Finally,the research results of this paper put forward suggestions from the following two aspects:(1)improve the management incentive mechanism and supervision mechanism;(2)Prefect the internal control.From the perspective of the relationship between the shareholding of the management and the internal control,it is an innovative point to study its impact on the inefficient investment.In the future,scholars can take the external corporate governance into the research scope for further exploration.