Research On Influencing Factors Of Enterprise Internal Capital Market Efficiency In Our Country

As China's enterprise-scale expansion and diversification trend ,the multi- branches enterprise becomes the main body increasingly in the social economy activity, and its internal capital assignment problem also gradually becomes the focus of the theory and the practice research. With the external capital market incomplete , the research on internal capital market efficiency is significant.Through the research on enterprise internal capital market function and fund process, this paper analyses many factors which influence internal capital market allocation efficiency and empirical tests efficiency and influencing factors associating with theory analyzing. The paper makes use of firm management, group finance control, information economics and the finance knowledge, and empirical tests capital market efficiency and influencing factors.This paper is divided into six chapters. Chapter I starts with the introduction of research background, defining internal capital market notion and character. Beginning with the function of the internal capital market, chapter II elaborates the function of the internal capital market, such as pooling funds, optimizing the allocation, supervision and encouragement, risk diversification. Comparing with the external capital markets, the paper explains the internal capital market advantages and disadvantages. From the perspective of the internal capital market, chapter III detailedly analyzes the process of the enterprise capital allocation in China. The process can be divided into capital financing, investment decision-making, capital allocation, investment monitoring and evaluation four parts. Chapter IV analyses the factors which affect enterprise internal capital market efficiency. In Chapter V, the whole capital allocation efficiency of listed manufacturing group company in eastern area of our country and respectively listed company is empirical tested and compared, and the result shows that internal capital allocation in eastern area of our country represents higher efficiency. Through the multiple regression analyzing on the influencing factor and verifying the theoretical analysis result, the paper gains the research consequences. Based on the theoretical analyzing and empirical testing, chapter VI summarizes the whole paper briefly and proposed the suggestion strengthening our country internal capital market.