| Institutional investors are an important part of the company’s external supervision mechanism,which not only affects the determination of dividend policy,but also affects the company’s investment decisions.The G20/OECD Corporate Governance Principles(2016)further enrich the content of institutional investors and recognize the role of institutional investors in corporate governance.With the continuous development of the capital market,the number of institutional investors in China is expanding year by year,and the degree of concentration in the company’s ownership structure is constantly increasing.Institutional investors have become an important force in the securities market and are participating in corporate governance in a more active way.Institutional investors have different sources of funds,investment restrictions,level of expertise,stock ownership motivation and risk-taking level.Different types of institutional investors have different motivations and abilities to participate in corporate governance,thus playing different roles in corporate governance.The impact of institutional investors’ heterogeneity on dividend policy and investment has attracted great attention in academic circles.Dividend policy and investment decision are the core content of company finance.The distribution of cash dividends directly affects the company’s free cash flow,resulting in the reduction of cash allocation in the hands of management,which can improve the rationality of resource allocation,avoid the management’s investment in projects with negative net present value,reduce the agency cost of managers and shareholders and the risk of over-investment,and improve the efficiency of investment.The investment activities of companies are important driving factors for wealth creation.Effective investment can reduce the cost of investment,improve the efficiency of resource allocation and promote better development of companies.Dividend distribution also affects corporate financing and investment activities.The heterogeneity of institutional investors influences dividend policy and investment decision through external governance.On the basis of combing the relevant literature at home and abroad and analyzing the current situation,this paper tries to put forward and verify the following theoretical assumptions: cash dividend has governance effect,can restrain the inefficient investment behavior of the company and improve the investment efficiency of the company;institutional investors with high proportion of shareholdings usually take an active part in corporate governance based on cost and income,and can improve the investment efficiency of the company.It also promotes the negative correlation between cash dividend and inefficient investment.Stable institutional investors actively participate in corporate governance based on shareholding motivation,which can improve the efficiency of corporate investment and have a negative correlation with inefficient investment.Compared with transactional institutional investment,stable institutional investors are more able to strengthen the negative correlation between cash dividend and inefficient investment.This paper chooses relevant data of listed companies on A-share motherboard from 2010 to 2017 as samples,uses Richardson model to regress the absolute value of residual to construct inefficient investment,and uses it to measure investment efficiency and analyze the impact of cash dividend on investment efficiency.The results show that there is still a phenomenon of inefficient investment in Chinese listed companies.Cash dividends issued by listed companies can restrain the inefficient investment and improve the investment efficiency of companies.Institutional investors with high share-holding ratio can enhance the promotion effect of cash dividends on investment efficiency.After further refinement of the overall sample,we find that: compared with state-owned companies,the moderating effect of institutional investors with high shareholding ratio and stable institutional investors in non-state-owned companies is more significant;secondly,the moderating effect of institutional investors with high shareholding ratio on the relationship between dividend policy and investment efficiency is stronger in companies with high free cash flow,while the moderating effect of stable institutional investors is stronger in free cash flow.The moderating effect is more obvious in companies with low cash flow. |
