| Investment activities is an important foundation for the capital accumulation, and investment behavior have a direct impact on the efficiency of the company to maximize the value. Over-investment, under-investment and other non-efficiency investment are very prevalent phenomenon in China's listed companies, seriously hampered the healthy development of the company. Institutional investor,as the third-party shareholders of listed companies have information and personnel strengths to overcome the "free rider" problem of individual investors in corporate governance, which can play a role in the supervision of the company decision-making group,and suppressing levels of the company's non-efficiency investments. But there are many differences between the institutional investors, which will affect their objective function of participating corporate governance, and company's investment decision. Thus, the study of institutional investors resulting of the different effects on non-efficiency investment from the heterogeneity aspect has theoretical and practical significance.This paper select A-share manufacturing companies as a sample,which time from2008to2010.The non-efficiency investment of the companies which have the promblem of non-efficiency investment is drawing on Richardson's (2006) non-efficiency investment measure model. Then choose the companies which have non-efficiency investment as a sample, and the sample's non-efficient level of investment as the dependent variable.Based on the analysis of Heterogeneity of the institutional investors, this paper analysis how investors which are different types and different holding proportion affect the company's non-efficiency investment level.According to empirical test:institutional investors with moderate interventioncan effectively inhibit the company's non-efficiency investment level, and its stake is non-negative to the level of non-efficiency investment, but the institutional investors that of weak degree intervention have no significant effcet with the level of non-efficiency investment; institutional investors with a higher proportion of the overall holdings can help to increase the pressures on the company's decision-making group and help decision-makers to adopt a more rational investment strategy, thereby reducing the level of non-efficiency investments; but this article didn't find any correlation between institutional investors holding a biggest stake compare with other institutional investors comes from ten largest shareholders and the level of non-efficiency investments, this phenomenon demonstration that an individualcan only have a limited influence on the company investment decisions,and the reason is the cost considerations of monitoring; Finally, the paper also examines relationship between the number of institutional investors in the top ten shareholders and the level of non-efficiency investment,and the result shows their correlation is Negative.And the same correlation also been foud on the relation between holding rate of the institutional investors in the top ten shareholders and the non-efficiency level. In short, the different types of institutional investors are diffirent in corporate governance participate motivation and ability, through the development of institutional investors, foster the environmente of institutional investors to participate in the governance of listed companies,can promote reasonable investment and value maximizing. Finally, the article propose a series of recommendations on how our country to develop institutional investors.The innovation of this paper is mainly reflected as follow:Introducting the Heterogeneity of the institutional investors into the field of non-efficiency investments reserch, classify institutional investors into diffirent group based on the reserch of the heterogeneity of institutional investors, and study the impact of institutional investors on the non-efficiency investments level from the Individual differences and stake. |
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