Abstract: Taking the corporations that made directed additional issuances during 2008 and 2009 as the research objects, this paper conducts a comparative analysis of the investment efficiency three years before and after the directed additional issuances by using Richardson (2006) residuals measurement model and a comparative analysis of the different issuing objects three years after the directed additional issuances. The results show that, compared with that before the issuance, the underinvestment of listed companies has been eased after the issurance. Compared with the issurances faced to the major shareholders and the related shareholders, the issurances to the institutional investors can effectively solve the problem of the inadequate investment of the listed companies. This discovery has practical significance of guidance for securities regulatory authorities to supervise the inefficient investment behavior controlled by the major shareholders and to improve corporate performance.

Key words: directed additional issuance; investment efficiency; investment behavior