Empirical Study Of The Effect Of Institutional Investors’ Stock-holding To The Over-investment

China will focus on the development of the new energy industry,which is a strategic emerging industrie. In the tilt of national policy and local government GDP-oriented, the new energy industry is developing rapidly, and achieved certain results,but faced with problem such as overinvestment, overcapacity.The new energy industry listed company as the industry leader,its over-investment behavior not only damages the entire industry and the development of their own health, but also against the interests of investors.With the development of China’s institutional investors, it has gradually become an important force in the stock market. Some institutional investors are changing,once with Negative attituded and "voting with their feet",but now with Positive attitude and "voting with their hand".Some institutional investors are beginning to use their expertise and information superiority, to participate in the company’s investment decisions, supervise the management of listed companies to improve corporate governance standards.In this paper, i set the new energy industry listed company from 2011 to 2013 as sample,from the factor of institutional investors, we studied its effect on over investment levels.First,this paper describes the research background and development status of new energy listed company, and gives a brief description of research results at home and abroad about overinvestment.Then, this paper analyzes the basic theory of investors and excessive investment agencies and analyzed the mechanism about institutional investors affecting over-investment from the perspective of corporate governance.Then Build a model to measure the level of investment of the sample companies,and the positive regression residuals is the estimated level of over-investment.On this basis, building correlation model about institutional investors’ holding and excessive investment level.Given the heterogeneity of institutional investors, it may have a different behavior in participation in corporate governance, so institutional investors will be-divided into independent and non-independent categories.Then, separately from the overall institutional investors’ holdings, Independent institutional investors’ holding and non-independent institution investors’ holding angle of view, analysis of the influence of institutional investors over the over-investment behavior.The results showed that the overall institutional investors’ holding has a positive correlation with over investment,s well as Independent institutional investors’ holding.The non-independent institution investors’holding has no significant relationship with corporate overinvestment.Finally, this paper give proposals about better development of the institutional investors.