Corporate bond financing has become an importantly external debt financing channel of the Chinese listed companies. This paper draws Richardson s investment model, and uses the data of the listed companies from 2007 to 2011 as samples to examine the influences of corporate bonds over the listed companies’ ineffective investment. Results show that the ineffective investment in the Chinese listed companies is widespread. Corporate bond financing has brought more impacts on “shareholders–creditors” conflicts than on those of “shareholders–manager”. Thus, it has exacerbated the over-investment behavior of the listed companies, while the corporate bond financing has improved the external financing environment to ease the underinvestment of the listed companies.