Institutional Environment and Corporate Investment Efficiency: Based on the Empirical Evidence of Chinese Listed Companies

The investment is the core content of the enterprises' production and operation, and it's the driving force of the enterprise value growth. The philosophy of extensive growth business in our country leads to the serious over-investment problem, which has greatly damaged the interests of the shareholders. This article focuses on the impact of the investment environment on corporate investment structure, excessive investment, under-investment and insufficient investment efficiency. The study finds that good investment system environment can inhibit the over-investment of enterprises. The better the investment environment is, the less over-investment will be. We also find that the unexpected investment is also affected by the investment climate. The better the investment environment is, the less amount of non-normal investment will be. This article verifies the close relationship between the investment behavior of enterprises in China and the external institutional environment of China's enterprises, which provides further support for the theory of institutional economics.