The Research Of Institutional Investors' Shareholdings And Non-efficiency Investment

Investment, as one of the most important economic activities of enterprises, is of great significance for the expansion of business scale and the growth of earned profit. The effectiveness of the investment activities is related to the company's future development directly. However, China is still in the transition stage of economic development at present, and most of the corporate governance mechanism function is weakening, and non-efficiency investments is widespread. Non-efficiency investment has become an important obstructive factor for enterprise quality improvement and sustainable development. How to suppress the non-efficiency investment has become an important topic among academics and practitioners. From the mechanism of supervision and balance, many scholars have found an effective solution--developing institutional investors. However, in the market economy environment, we still need to verify whether the institutional investors can inhibit the non-efficiency investment.Through literature analysis and econometric approach to study the influence of institutional investors' shareholdings on the non-efficiency investment. In the theoretical analysis part, this paper summarizes the meaning and development of institutional investors and non-efficiency investment, and analysis what factors of institutional investors' shareholdings and how institutional investors to affect the non-efficiency investment. In the empirical analysis part, this paper uses Richardson model to measure the non-efficiency investment, and from two aspects of shareholdings characteristic and institutional investors type study the influence of institutional investors' shareholdings on the non-efficiency investment, finally measure the non-efficiency investment for stability test with non normal investment efficiency method.The main research results are show below after the empirical analysis.First, the overall shareholdings does not affect the non-efficiency investment. Second, the shareholdings concentration have a significant influence on the non-efficiency investment. Thirdly, the shareholdings difference can suppress the non-efficiency investment. Particularly, the greater of the top five institutional investors' difference, the greater the impact. Fourth, for the single institutional investors, the bigger the investment proportions for a company, the greater the inhibition for the non-efficiency investment. Fifth, both the overall shareholdings of pressure resistance and pressure sensitive have only promoting effect on the non-efficiency investment, and the latter is more notable.Finally, according to the results of theoretical analyses and empirical analysis, this paper puts forward some development suggestions from the perspective of the market and the company and the institutional investors. First, to perfect the market system and strengthen the protection of the interests of the investors. Second, to control the access system strictly and improve the quality of the public company. Third, to improve the level of institutional investors' shareholdings appropriately.