Earnings Management And Inefficient Investment Research

With the rapid development of the economy,investment as an important capital activity can promote economic development and expand the scale of enterprises.Investment efficiency is one of the important criteria for measuring the development of corporate investment.At the same time,many factors also contribute to investment efficiency.The value of the enterprise can be improved by high-efficiency behavior,so that the domestic economic level can be steadily improved.As an important decision-making activity,investment decision-making is carried out throughout the business process.On the one hand,it determines the profit level and risk level of the enterprise,and determines the external capital market's judgment on the development prospects and operation level of the enterprise.With the development of the economy and society,the investment activities of listed companies in the economic tide have also increased.Growth is accompanied by problems,such as insufficient investment and the emergence of excessive investment behavior,that is,non-efficiency investment.Inefficient investment hinders the improvement of the company's value and becomes the "threshold" on the road of enterprise development.How to curb the emergence of non-efficiency investment behavior and thus improve investment efficiency is a severe test for every company.In recent years,the discussion of listed companies' earnings management and non-efficiency investment topics has stimulated the interest of scholars.The existence of earnings management obscures the real accounting information,which leads to the aggravation of agency problems and the asymmetry of information,which leads to inefficient investment.The company's sustainable development is inseparable from a comprehensive internal mechanism system in which internal control plays an important role.With the great attention given by the Chinese government and other regulatory authorities to internal control and the promulgation of relevant laws and regulations,domestic experts and scholars have studied the internal control field.From the perspective of the company's strategic development,for the long-term development,the improvement of the internal control system is crucial,so the internal control system has been established.Most of the previous scholars' research is based on earnings management and investment efficiency,or based on internal control and investment efficiency research.Few scholars have involved the influence of internal control on the relationship between earnings management and non-efficiency investment.Therefore,this paper explores the relationship between earnings management and non-efficiency investment,and then explores the impact of internal control on it.This paper takes the data of A-share listed companies in Shanghai and Shenzhen stock markets from 2013 to 2017 as a model to explore the relationship between earnings management and non-efficiency investment.At the same time,based on the internal control perspective,it studies the relationship between earnings management and non-efficiency investment influences.Studies have shown that earnings management is prone to inefficient investment behavior.The existence of internal control will inhibit the positive correlation between earnings management and non-efficiency investment.That is,the inefficient investment behavior caused by information asymmetry and agency problems will be reduced due to the existence of internal control,and internal control plays a positive role.