Abstract:

This paper, based on the investors’ cognitive features perspective, explores the influence of the investors' attention to the investment efficiency of listed companies, and whether the institutional environment constraints affect the investment attention on efficiency of investment. The empirical study finds that investor attention can ease the shortage of investment in a certain extent, but did not inhibit the over investment. It is further found that in excessive investment group, strengthening investors’ attention could help companies to obtain more external finance ,but when the investment in the company is insufficient, this phenomenon does not appear. In addition, when joining external financing as control variables, the significant degree of correlation coefficient between investor attention and investment efficiency did not significantly change, showing that the influence of attention on the investment efficiency of investment is not achieved by external financing. At the same time, the study also found that the high degree of marketization can effectively alleviate the degree of information asymmetry and make up for the scarcity of investors' attention.