Abstract: Based on the view of behavioral corporation finance, firstly, the ineffective finance condition in Chinese stock market and its impact on the corporation investment behavior through shareholding financing channel are theoretically elucidated. Subsequently, the corporation investment behavior under the different shareholding financing result and size is empirically studied. The conclusions are:(1) the ineffective finance condition in Chinese stock market through shareholding financing channel impacts on corporation investment behavior with various degrees;(2)for the corporation unable to acquire shareholding financing, the stock price is is irrelevant to the corporation investment level;(3)for the corporation acquired shareholding financing, the stock price shows a positive correlation with the corporation investment level;(4)the size of shareholding financing is less, the investment level is more sensitive to the stock price;(5)the size of shareholding financing is larger, the investment level is more inclined to expand under the insider control.

Key words: ineffective market, shareholding financing, investment behavior, behavioral corporation finance