Abstract: This paper analyzes the influence of investor attention on the efficiency of enterprise resource allocation from the perspective of over investment, and examines whether the equity financing capacity belongs to the influence channel based on the price pressure hypothesis of behavioral finance. Research finds that: investor attention is positively related to the over investment,and equity capital cost is moderating variable of the influence of investor attention on over investment; with the increasing of the degree of investor attention, the manager of the listed companies raise the degree of investment in order to cater investor, thus resulting in the higher degree of over investment. During the process, investor attention helps to reduce equity capital cost, and then transfers financing capability change information to the management of listed companies, reducing the potential equity financing constraints, raising the level of investment, and leading to lower investment efficiency.

Key words: inventor attention, over investment, equity capital cost, moderating effect