Abstract
This study investigates the impact of institutional shareholding on corporate investment efficiency and identifies the role played by information asymmetry as well as agency costs. The results show that (1) institutional shareholding promotes corporate investment efficiency, with state-owned institutions playing a more pronounced role. (2) Institutional investors' shareholding is negatively related to information asymmetry. (3) Institutional investors' shareholding is negatively related to agency costs. (4) Institutional investors' shareholding can improve corporate investment efficiency by reducing corporate information asymmetry and agency costs, which are reflected in reducing corporate information opacity and analysts' forecast divergence.
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