Empirical Studies Of The Impact Of Institutional Investors Holding Corporate Investment Decisions

Investment activity is an important financial activity for enterprises to increase theirstrength, accumulate capital, and investment decision is the core of the businessdecisions. The usefulness of the investment decision directly influence themaximization of enterprise value, and even related to the enterprise survival, is thehighest decision-making relates to the realization of business goals. At present, China isin a critical period of economic system reform, investment fields is undergoingprofound changes, in view of inefficiency investment decision-making behavior whichcommonly existed in China's listed companies, how to improve the usefulness ofinvestment decision become an important issue focus by academic. In order to acquireinvestment income, achieve long-term health development, enterprise must chooseinvestment plan properly, optimize the allocation of enterprise resources, and try theirbest to avoid risks. Along with the development of the securities market, institutionalinvestors changed from the passive investment into proactive investment gradually, theyinvolved in the enterprise decision practice much more, through put pressure andsupervision on the board of directors and management, to play a positive role in restrainthe efficiency enterprise investment decision."Institution equity" is already become animportant company management mechanism and caused domestic and overseasscholars' extensive attention.In this paper on the basis of previous studies, using the latest research results, notonly theoretically explain institutional shares of the listed company, the influence ofthe investment decisions, and using the latest data by using model empirically. Findinstitutional investors and business capital spending overall holding a significantpositive correlation, long linear institutional investors and enterprise capitalexpenditures are related, but short linear institutional investors and business capitalspending have no significant correlation. The empirical result with the theoretical basicconsistent and the results of the analysis conforms to China's basic national conditions.The innovations of this paper are:(1) Perspective innovation, this paper hadresearched the impact in investment decisions those occurred after "institution equity"participated in the management of enterprise from the perspective of "institutionequity".(2) Added a new explanatory variables—institution equity time besidesinstitutions total holding level.