| Investment activities are the core content of the company's financial management activities.When the company's investment deviates from the expected target,it will lead to inefficient investment behavior.Due to the particularity of China's capital market,the company's internal agency problem and information asymmetry,there is a widespread non-efficiency investment phenomenon among listed companies in China.Non-efficiency investments have two manifestations: one is that investing in projects with negative net present value leads to over-investment,and the other is that abandoning investing in projects with the net present value leads to under-investment.The size and quantity of institutional investors have continued to grow and develop in China's capital market.The increase in shareholding ratio has enabled it to influence the company's business decisions,thereby inhibiting the inefficient investment of listed companies.The rapid development of private enterprises provides an important supporting force for the capital market.The non-efficiency investment phenomenon seriously hinders the vitality and creativity of private enterprises in the market economy.Therefore,it is necessary to take the private listed companies in China as the research object,and have a targeted discussion on the relationship between institutional investor heterogeneity and non-efficiency investment.This paper mainly adopts the normative research method and the empirical research method,from the theoretical analysis and the empirical analysis.In terms of theoretical analysis,firstly,this paper introduces the research background,purpose and significance.Secondly,it reviews and sorts out related literatures at home and abroad,and expounds related concepts and theoretical foundations.Thirdly,we describes the development status of institutional investors and non-efficiency investments.In terms of empirical analysis,this paper takes the panel data of A-shares of China's private listed companies from 2014 to 2017 as the research object.Firstly,this paper firstly uses the revised Richardson model to measure the level of non-efficiency investment,divides the level of non-efficiency investment into over-investment group and underinvestment group.Then,we empirically examine the relationship between institutional investor heterogeneity and listed company's inefficient investment from the perspective of institutional investors' overall shareholding,shareholding period and shareholding independence.Based on theoretical analysis and empirical analysis,we draw the conclusions of this paper as follows:(1)Private listed companies generally have non-efficiency investment behaviors.Among them,the phenomenon of insufficient investment is more than excessive investment,but the level of over-investment is more serious than the level of under-investment.(2)The overall shareholding ratio of institutional investors has not inhibited the inefficient investment of private listed companies effectively,but they has intensified the excessive investment behavior of enterprises.(3)Long-term institutional investors' holdings can alleviate the underinvestment of private listed companies significantly,but they can not restrain the excessive investment level of private listed companies.While short-term institutional investors' holdings can exacerbate the inefficient investment behavior of enterprises.(4)Independent institutional investors can play an effective role in monitoring and suppress the inefficient investment of private listed companies.Non-independent institutional investors can intensify the level of excessive investment,but they have no significant effect on underinvestment.Combined with China's actual situation,this paper puts forward suggestions from three aspects: promoting the diversified development of institutional investors,guiding the role of policy makers and improving the quality of target companies.On the basis of in-depth study of the heterogeneity of institutional investors,listed companies can form an incentive mechanism to promote the establishment of long-term,independent institutional investors to actively supervise investment decisions,which has practical significance for the healthy development of institutional investors in China and the improvement of investment efficiency of listed companies. |
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