Abstract: Based on the analysis of the relevant data of the central enterprises holding listed companies in electric power industry from the stock market Shanghai and Shenzhen from 2011 to 2015, it is found that the followings affect the non-efficiency investment of the central enterprises holding listed companies: the management fee, the ratio of large shareholders, the board size, the proportion of independent directors and concentration of equity are inversely proportional to the non-efficiency investment; the ratio of equity is incentive to non-efficiency investment; executive compensation, free cash flow and financing cash flow are positively correlated to the non-efficiency investment; the cash dividend is negatively correlated to the non-efficiency investment.

Key words: electric power industry, non-efficient investment, central enterprises holding listed companies