Abstract: In order to study the relationship between corporate tax avoidance activities and investment efficiency, the Richardson model was used to measure investment efficiency; and a linear model between investment efficiency, underinvestment and over-investment and tax avoidance activities was further constructed. The results showed that ①the tax avoidance degree of the enterprises is negatively correlated with the investment efficiency. The higher the tax avoidance degree of enterprises, the lower the investment efficiency. ②Corporate tax activities are positively related with excessive investment relations. And there is no obvious evidence that the corporate tax avoidance activities have a significant relationship with insufficient investment. That is, corporate tax avoidance is prone to over-investment. Therefore, it is recommended that enterprises should reasonably understand the economic consequences of tax avoidance behaviors and strengthen the evaluation and analysis of management investment behaviors, so that management can reduce self-interested behaviors that damage corporate value and improve investment efficiency.

Key words: tax avoidance, investment efficiency, over-investment, insufficient investment