Research on the Effect of Internal Control on Environmental Protection:The Perspective of Over-Investment of Chinese Heavy Air Pollution Listed Companies

In order to explore the governance role of internal control in Chinese heavy air pollution enterprises’ over-investment that will aggravate the haze pollution of China, this paper analyzes the relationship between internal control and over-investment based on the 2009-2013 data of heavy air pollution listed companies. The results indicate that the internal control can effectively inhibit over-investment and thereby reduce the haze pollution. In addition, such inhibitory effect is more significant in state-owned heavy air pollution listed companies. This paper also tests the effect of internal control on under-investment of heavy air pollution listed companies and it is not apparent. This study shows that the internal control has a certain promotion effect on environmental protection of China.