The Influence Of Institutional Investor’s Shareholding On Investment Efficiency

With the development and improvement of modern enterprises,enterprise investment has become a very important activity.Investment can not only increase the value of enterprises,but also provide power for the development of enterprises.Fundamentally speaking,the investment behavior and investment efficiency of enterprises determine the development direction and planning of enterprises,so the investment efficiency of enterprises has become a hot topic of enterprise development.However,due to the existence of information asymmetry and principal-agent problems,the investment of enterprises may deviate from the normal investment level,resulting in the inefficient investment problem.Under investment and over investment will lead to the waste of enterprise resources,reduce the effective use of resources and hinder the growth of enterprises.At present,the important investors in China’s market are institutional investors.Compared with ordinary investors,they have more advantages in professional knowledge,capital,management experience and information exchange channels.After holding shares in listed companies,they can make use of these resource advantages to mine information,actively supervise enterprises,and reduce information asymmetry and agency costs of enterprises,so as to achieve a certain goal Improve the investment efficiency of enterprises to a certain extent.According to the relevant literature,in many studies on institutional investors and investment efficiency,only a few scholars study the internal channel mechanism of institutional investors affecting investment efficiency,and most scholars explore the relationship between institutional investors and investment efficiency from the perspective of institutional investors’ heterogeneity or corporate governance effect.Information asymmetry and agency cost will make enterprises face the problem of differences between internal and external financing costs,resulting in the generation of financing constraints and affecting the investment efficiency of enterprises.However,institutional investors’ holding shares will greatly slow down the generation of financing constraints and improve the investment efficiency.Therefore,in this context,this paper explores whether the financing constraint is an internal mechanism for institutional investors to affect investment efficiency.This paper selects the financial data of Shanghai and Shenzhen A-share listed companies from 2013 to 2019 and the proportion data of institutional investors,uses the inefficient investment obtained by Richardson residual model regression as the model to measure the investment efficiency,and uses the fixed effect model regression to study the institutional investors’ shareholding,investment efficiency and financing constraints The relationship between them.Through theoretical analysis and empirical analysis,we can draw the following conclusions: whether it is under investment or over investment,corporate investors’ shareholding can improve the investment efficiency of enterprises,reduce the waste of resources,and promote the development of enterprises,while institutional investors’ shareholding can improve the investment efficiency of enterprises,which needs financing constraints as a mediating effect.According to the further analysis,it can be found that when the institutional investors hold a lower proportion of shares,it will not have a significant impact on the investment efficiency of enterprises,and the intermediary effect of financing constraints does not exist;when the institutional investors hold a higher proportion of shares,the intermediary effect of financing constraints will be obvious,making the resource advantages play a greater role,so as to improve the investment efficiency and promote the development of enterprises.The research focus of this paper is to find the impact and reasons of institutional investors on investment efficiency,and to deeply analyze the internal influence mechanism,so as to provide theoretical support and scientific basis for enterprises to scientifically formulate the management strategy of institutional investors.