The Large Shareholders' Funds Of Listed Companies Are Taken Up With The Study Of The Relationship Between Investment Efficiency

Investment is an important role in an enterprise, and is also one of the major forces driving China’s economic growth. Enterprise efficiency of investment has shown enterprise allocation fund ability, and is related to enterprise being able to have attained value maximization’s objectives, to have decided enterprise survival state and development prospect in being in market competition or not. However, due to agency problem and the objective existence of asymmetric information, corporate investment is often over-investment or under-investment, and inadequate investment and over-investment can low investment efficiency, which makes the enterprise difficult to obtain long-term development. In the security market of our country, the phenomenon that major shareholder’s capital occupying is emerging constantly, which has a difficult problem that affects the investment efficiency. So the article has studied the relationship between the major shareholder’s capital occupying and the investment efficiency.Based on the former literatures, using the theoretical and empirical method, the article takes230non-financial companies listed in Shanghai stock exchange and Shenzhen stock exchange from2006to2010as research samples. The paper empirical analyzed the relationship between the major shareholder’s capital occupying and the investment efficiency, using the rate of major shareholder’s capital occupying, the proportion of the first shareholder and shareholder’s balance degree.This paper found that:Inefficiency investment is common in Chinese companies, and the major shareholder’s capital occupying has a negative effect on the investment efficiency. Consequently, how to prevent the major shareholder’s capital occupying do help improve the investment efficiency. The article provided policy advice in the end of the paper.