The Impact Of Internal Control On Inefficient Investment From The Perspective Of Characteristics Board Of Directors

Under the current conditions of my country’s market development,investment plays a very crucial role in China’s economic and social development and in the process of international exchanges.However,under the current background,the growth of investment scale has a weakening ability to drive the national economy.The root cause is that At present,Chinese listed companies are facing the problems of unreasonable investment scale and insufficient investment.It can be seen that restraining the company’s inefficient investment behavior is already a very important issue.From a theoretical point of view,an effective internal control management system can prevent the company from problems such as internal information asymmetry and agency conflict,and thus can effectively control the company’s inefficient investment behavior to a certain extent,but its practical utility remains to be determined.At the same time,the board of directors,as a functional organization closely related to internal control,can effectively exert its supervisory function and strengthen the effectiveness of the company’s internal control with a reasonable board structure.Therefore,the characteristics of the board of directors are of great significance to the research on the relationship between the inefficient investment behavior and internal control of enterprises..This paper firstly summarizes and analyzes the existing theories based on non-efficiency investment,internal control of enterprises and the characteristics of directors,as well as relevant foreign research results,emphatically analyzes the specific factors that produce non-efficiency investment,the relationship between corporate internal control and non-efficiency investment,and the impact of different board characteristics on the effect of corporate internal control,and and puts forward relevant assumptions and empirical models.Then,after dividing the categories and measurement methods of the company’s internal control,inefficient capital and director characteristics,the paper selects the 2016-2020 A-share listed companies in Shanghai and Shenzhen as the main research objects,and discusses their internal control in depth.The influence and mechanism of non-efficiency investment,and the intermediary role played by the quality of information disclosure and agency cost in the process of corporate internal control affecting the company’s non-efficiency investment,and the moderating role of directors’ characteristics in the process,etc.It tries to provide a basis for further improving the investment efficiency of Chinese listed companies and improving the internal control system,thereby enhancing the value of enterprises.The main conclusions presented in the paper include:Firstly,the problem of inefficient investment still exists in my country’s listed companies.Specifically,the problem of underinvestment is more common,but the degree of overinvestment is more serious.Secondly,in my country’s listed companies,internal control can restrain inefficient investment.Thirdly,internal control can improve the quality of the company’s information release,can reduce the occurrence of information asymmetry,and then effectively control the company’s inefficient capital investment..Fourthly,agency costs play a partial mediating role in the suppression of inefficient investment by internal control.Fifthly,the expansion of the scale of directors will increase the inhibitory effect of internal control on the company’s inefficient capital investment..Sixthly,the change in the proportion of independent directors has no significant impact on the internal control of the company to prevent the company from inefficient capital investment..Seventhly,the combination of two roles will impair the inhibitory effect of internal control on inefficient investment.Eighthly,the increase of directors’ remuneration will reduce the inhibitory effect of internal control on the company’s inefficient capital investment.Finally,based on the previous theoretical and empirical research,this paper puts forward suggestions on improving the internal control system,optimizing the establishment of the board of directors.