Environmental Uncertainty, Institutional Investors And Corporate Investment Efficiency

Investment activities are the core part of the company's financial activities.Reasonable investment decisions are directly related to the enhancement of the company's value and sustainable development.General Secretary Xi Jinping clearly emphasized the importance and necessity of promoting effective investment and fulfilling the status of investment subject in the report of the 19 th Party Congress.However,under the realistic background of unpredictable international political environment,instability during economic transition,and lagging information circulation,the constant changes in markets and technologies have made the macro environment facing enterprises more complicated and complicated,and their investment activities will be affected by this.Whether environmental uncertainty will cause inefficient investment in enterprises has become a topic worthy of discussion.With the gradual development and growth of institutional investors in China's capital market,its governance role in the business process of enterprises has become increasingly prominent,and institutional investors are actively playing a role in improving the capital market.Therefore,this article takes institutional investors as the starting point and explores the relationship between environmental uncertainty and corporate efficiency investment,which is of great significance for improving corporate investment efficiency and improving the development of institutional investors.Based on the related theories of principal-agent,resource dependence,information transmission and behavioral finance,this paper studies the impact and mechanism of environmental uncertainty on the investment efficiency of enterprises,and examines its impact on the environment from two paths of institutional investors and their heterogeneity.The moderating role of uncertainty and firm inefficient investment.In the case of a highly uncertain external environment,The analysis considers that the lack of key information and resources will affect the investment decisions of management,while institutional investors have stronger power of equity management and information processing capabilities,which can reduce information asymmetry in the capital market.It also effectively supervises and restricts the management's operating behaviors,reduces the moral hazard problem between agents and principals,and curbs management slack,which has a certain impact on investment efficiency.This paper uses the relevant data of China's A-share non-financial listed companies from 2014 to 2018 as a sample and combines the existing literature to construct a multiple regression model to empirically test the impact of environmental uncertainty and institutional investor holdings on corporate investment efficiency.The study found that,under the same conditions,the environmental uncertainty will have a negative impact on the investment efficiency of enterprises,and will aggravate the underinvestment and overinvestment of listed companies.The involvement of institutional investors can suppress the negative impact of environmental uncertainty onthe investment efficiency of listed companies,and this effect is even more pronounced in enterprises with independent institutions.Based on the above research,three suggestions are put forward:(1)enterprises to improve the supervision mechanism in investment activities and continuously optimize their own management systems;(2)institutional investors should continue to improve and develop themselves to improve the degree of information disclosure and information quality;(3)Government agencies strengthen effective monitoring of corporate investment decisions and the establishment of different types of institutional investor supervision systems.