Based on the balanced panel data of Chinese listed firms from 2011 to 2015，this paper makes an empirical study on the influence that the holding of institutional investors to the capital structure adjustment , and analyzes the way and the efficiency of the adjustment. The result shows that the institutional ownership has a positive relationship with the adjustment speed. The higher shareholding ratio is, the faster adjustment speed it will have; In the path of capital structure adjustment, the enterprises with higher institutional ownership prefer to choose debt financing to achieve the target capital structure. Finally, we used the ratio of WACC between the target and the real capital structure to measure adjustment efficiency, it demonstrates the effectiveness of institutional ownership to the dynamic adjustment of capital structure.