This paper studies the impact of vertical interlocks of executives on the investment efficiency in China’s listed companies. The results show that： vertical interlocks of executives can significantly improve the enterprises’ investment efficiency. When subdividing different types of concurrent duty category， compared to the vertical interlocks of the executive， the vertical interlocks of the chairman has a stronger influence on the investment efficiency. When further researching action its mechanism， we found that vertical interlocks of executives exert the “supervision effect” and “less tunneling effect” at the same time. Specifically， vertical interlocks of executives play a “supervisory effect” by reducing managerial agency costs， and play a “less tunneling effect” by reducing the outflow of benefits of affiliated transactions. This paper expands the corporate governance effect of vertical interlocks of executives， which is a beneficial supplement to economic consequences of vertical interlocks of the executive.