The authors adopt panel data from municipal-level cities in China to examine the impacts of holding mega-events on city investment, debt financing and land development. The results indicate that the inhibit effects of holding internationally-influential mega-events on city investment is greater than its promote effects because local governments are devoted to improving city environment in order to enhance city image, so that the decrease of investment resulting from their restrictions on polluting enterprises and high-pollution projects is greater than the increase of investment which mega-events attract. In addition, internationally-influential mega-events and nationally-influential mega-events have significantly positive effects on issuing Quasi-municipal Bond and mortgaging land, helping to break the local government fiscal restraint. Regionally-influential mega-events have significantly positive effects on attracting city investment. Local governments may concern more about city investment and economic development than city image.