These years, with the fast development of information economics and econometrics, the phenomenon of inefficient investment behavior based on asymmetric information, agency and so on becomes the scholars’ research focus.However, at present research status, scholars have different opinions about inefficient investment.Each theory model is workable only when the hypothesis is very strict and the phenomenon is specific.In addition, the empirical test result is different.The paper wants to research the inefficient investment behavior of Chinese listed companies systematically, not only reasonably define the meaning and scope of Chinese listed companies’ inefficient investment behavior in theory, but also judge and prove the present situation of Chinese listed companies’ inefficient investment empirically and its effective corporate governance means.And then puts forward Chinese listed companies to solve inefficient investment behavior in an effective way.It is meaningful for Chinese listed companies to take best investment scale to improve the company’s value, protect the shareholders’ interests and promote the countrys capital market healthily, sustainably and well.　　At first the paper reviews domestic and international research about inefficiency investment, then describes the related theory.On the basis, the paper selects all the A shares listed companies, after screening, get 759 companies, take their 2005-2010 years’ business data, amount to 3795 samples, to construct the listed companies’ investment equation, thus define and measure a company is over investment or under investment.Then based on the agency conflicts perspective between creditors and shareholders, shareholders and management, big shareholders and small shareholders, put forward hypothesis, introduce group control, corporate governance and other factors into the equation gradually, through the binary classification logistic regression to compare and analyze various explanation variables’ influence to a company’s over investment or under investment.The main conclusions are as follows.(1)It is a common phenomenon that Chinese listed companies exists inefficiency investment, and the samples of under investment is more than the samples of over investment, the problem of is under investment more serious.Operating cash flow, asset growth rate, enterprise scale and the listed company’s listed year significantly affect the inefficiency investment behavior.Operating cash flow, asset growth rate and enterprise scale have significant positive correlation with over investment, at the same time the listed company’s listed year have significant negative correlation with over investment.(2)The relationship between management share ratio and inefficiency investment is not significant.(3)The largest shareholder share ratio has a significant negative correlation with over investment.(4)The separation degree of the actual controller’s two rights has a significant negative correlation with over investment, the same to tunnel excavation.And ownership restriction has a significant positive correlation with over investment.(5)The listed companies under group control are more likely to over investment than that are not controlled by group.　　Finally, based on the empirical analysis result, the paper give some proposals to improve Chinese listed companies’ inefficiency investment mainly from strengthening management motivation and restraint, optimize the ownership structure and perfect company’s investment decision-making process and so on.