Private Conversation Of Institutional Investors Affects Corporate Investment Efficiency

“Shareholders' activism” believes that institutional shareholders can reduce the principal-agent problem between shareholders and managers,curb adverse selection and moral hazard,and guide enterprises to make correct investment decisions and improve corporate investment efficiency.There are many ways for institutional investors to participate in corporate governance.Private communication allows the organization to provide relevant opinions and suggestions to the company on its concerns,which not only strengthens the effective supervision of the company's management,but also establishes a peaceful relationship between the two.Type investment;guides company management to make the right investment decisions while mitigating information asymmetry and reducing agency costs.The main form of institutional investors' private communication in China is institutional research.In recent years,private communication of institutions has been widespread in China's capital market.Private communication between listed companies and institutions has become one of the important ways in the external governance mechanism of the company.Therefore,this paper starts from the private communication of institutional investors,analyzes the importance of the core management of listed companies to private communication,and further studies its impact on the company's investment efficiency.This paper selects the survey of the reception institutions of China's Shenzhen A-share listed companies from 2015 to 2017 as a sample,and uses the Logit model to analyze the factors affecting the core management of listed companies' emphasis on private communication.The Richardson residual model is used to study the non-efficiency investment of listed companies in China.Level;using panel data fixed-effects model to study how the importance of listed companies' private communication will affect the company's investment efficiency.The empirical results show that: First,the joint action of the organization will strengthen the emphasis of the core management of the listed company on private communication;second,the number of institutions involved in private communication and the proportion of institutional shareholding and the importance of the private management of listed companies to private communication Positive correlation;Third,the type of research institutions will affect the importance of private communication by the core management of listed companies.The focus is on the securities companies that provide research reports and the largest public funds that hold the largest shareholdings.High;while insurance companies and private equity funds will weaken the importance of the core management of listed companies;fourth,the emphasis on private communication by the core management of listed companies will affect the supervision effect of institutional investors on listed companies and management,privately The more attention is paid to communication,the more it can inhibit the inefficient investment behavior of listed companies.