The Study On The Effect Of Institutional Investors’ Stock-holding To Investment Efficiency

Investment activity is an important basis for the value of the company,whether the investment behavior is effective directly affect the company’s value maximization goal. There is a widespread phenomenon of inefficient investment in listing Corporation in China, which is the most serious problem of excessive investment and investment, which seriously limits the company’s further development and growth. How to improve the efficiency of investment has become the focus of attention in the academic and practical circles. With the development and growth of China’s capital market, the share of institutional investors in the market gradually increased, compared to the past passive investment, they gradually shifted to a more positive direction. They participate in the company’s daily operations, supervision and management to improve company’s investment efficiency and control of cash flow, and positive results were achieved in this aspect, supervision and management of this mechanism is our country capital market plays a more and more important role.Based on the basic understanding of institutional investors and investment efficiency, this paper analyzes the impact of institutional investors on investment efficiency and the specific impact of institutional investors on the basis of theoretical review and empirical analysis. Analysis on the mechanism, from the motivation analysis, mechanism analysis of two angles are analyzed,in terms of empirical test and creatively constructed a double progressive model: namely the correlation model of the Richardson investment efficiency measurement model and institutional ownership variable and investment efficiency, and gradually explore institutional investors on the investment efficiency of listed companies the actual effect. The study found that significantly positively related to the proportion of institutional shareholding and corporate investment efficiency, institutional investors shareholding changes rate had no significant effect on theefficiency of investment, more significant independent institutional investors on the investment efficiency of listed companies on the non independent institutions investors, this paper argues that institutional investors can effectively optimize the allocation of resources and improve the efficiency of investment. At the end of this paper, the development of institutional investors in China is analyzed and prospected, and a series of policy recommendations are put forward.