The Study of Internal Control and over-investment on Corporate Credit Risk

This paper is based on a sample of A-stock Chinese listed firms in Shanghai and Shenzhen stock exchanges from year 2009 to 2013, studying the impact of over-investment on the corporate credit risk, testing whether the improvement of the internal control quality can effectively control the credit risk resulted from the over-investment. The basic method adopted in this paper is to combine the theoretical analyses with the demonstration proof-test, while including the model of linear regression.