A Study On Allocation Efficiency Of Listing Companies' Internal Capital Market

In modern ecnomics,the efficiency of internal resource allocacion is the key factor for the whole resource allocacion.For a long time,people always emphasize the essentiality of External Capital Marke(EMC) in the ecnomics structure.But the emphasize is based on the EMC's efficiency which is higher than the accumulation of corporation itself.But in some conditions,this suppose is not come into existence,the EMC is not perfect. Sometimes the capital inside the corporation is more efficient.The paper studies the efficiency of internal resource allocacion.The paper reviews the theory of Internal Capital Market(ICM),and helps us realize the the efficiency of internal resource allocacion,existence of ICM and empirical result,and also tells us the differences between ICM and EMC.At the same time we analyse the intension and extention of ICM,and explain the theory of ICM's existence in the both corperatin and ecnomics theory point of view,and find the theory basic of the ICM's existence.The paper discusses the existence and variety of ICM in three different countries and ECM conditions,so as to expatiate that ICM is a useful complementarity for ECM.Based on the discussions above,we use Jeffrey Wurgler's model to do the empirical test on efficiency of resource allocacion of ICM,we choose private-owned listing company as sample,compare to single private-owned company to get a conclusion: private-owned listing company has the lower efficiency of resource allocacion.At last,for the problem of low efficiency of resource allocacion in Chinese listed company,we present some policy suggestions.