The Research On Influence Factors Of Internal Capital Markets' Efficiency In Chinese State-Owned Business Groups

Internal capital markets (ICM) is the place in which business groups'financial resource is incorporated and re-allocated, and its essence is an inner market behavior. ICM has the function of reducing the information problems and inspiration conflicts between the enterprise and external capital markets (ECM), reducing the financing cost and improving the financial resources'allocate efficiency. The operating efficiency of ICM decides whether the enterprise groups'advantage can be exerted adequately. Present literatures are main concerned on the resources allocate characteristic and efficiency of ICM in diversified enterprise groups. This paper chooses the state-owned business groups in Chinese transition economy as the research object. Compared with the present research object, state-owned business groups have their own property right characteristics, economic and political environment, invest characteristics. Started from the different characteristics, this paper reviews the efficiency and the efficiency's influence factors of ICM in Chinese state-owned business groups.The principal-agency theory and enterprise groups'internal capital allocation theory are the basic theories of this paper. First, we put forward principal-agency mechanism in stated-owned enterprise groups by using principal-agency theory for reference. The multi-level and complexity of the mechanism will solicit kinds of rent-seeking behaviors and holding shareholders'expropriation to minority shareholders. We analyze the enlightenment for this paper's research from the enterprise groups'internal capital allocation theory. Then we analyze the influence both from resource allocation way in ICM and the state-owned property right characteristics. According to these influence, we analyze the meaning of ICM'efficiency in state-owned business groups, and analyze the efficiency's influence factors from state-owned property right and political characteristics. By combining with other influence factors, the paper establishes a comprehensive model including all the influence factors. At last, by choosing proper samples and indexes, we make empirical tests to do researches on the efficiency and efficiency's influence factors of ICM. According to above analytic conclusion, we propose that by taking proper measures to reduce the two kinds of agent costs and to make the finance companies'financing and investing function more perfect. Thereby the operating efficiency of ICM in state-owned enterprise can be promoted.