How does the ownership structure affect the corporate governance, is always a topic which people pay attention in the field of capital structure. Recent years institutional investors have rapid development. Whether they can affect corporate capital allocation efficiency? Using institutional investor ownership data of Chinese listed firms over the period2005-2011, we investigate whether institutional investors can optimize corporate resource allocation efficiency. And whether the degree of optimization varies with different ownership property or different behavior style of institution? We find that institution ownership really can promote corporate resource allocation efficiency. While Fund and Dedicated Fund can cut down over-investment and alleviate under-investment, Transient Fund and Quasi-indexer Fund cannot affect corporate resource allocation efficiency. Further, we find that ultimate controlling shareholders of listed companies will affect institutional investor ownership and corporate resource allocation efficiency. And this kind of influence mainly reflect in company which controlled by local governments. |