Corporate Governace Factors On Chinese Companies' Internal Capital Market Efficiency Study

The enterprises have a lot of development during three decades of China's reform and opening up, the size of enterprises is increasing, especially in recent years, a large number of joint enterprises, holding companies and organizations such as M-type structure of large enterprises is emerging, enterprise groups, business diversification, organizational structure under multiple segments gradually become a trend. An internal capital market is formed in these enterprises, so the relevant problems of the efficiency of internal capital markets in theory and practice have become one focus of research. In addition, as China's economic development, enterprises are increasingly dependent on strong capital markets, the external capital market has played a major role, but there's all kinds of external capital market constraints, making the external capital markets as an alternative and complementary internal gradually developed capital market research, internal capital market efficiency is also concerned. Therefore, this paper selects efficiency of the internal capital market factors as the research object, from the perspective of corporate governance reveals the impact of internal capital market efficiency factors, it is conducive to more efficient use of corporate internal capital markets to function better.This paper systematically reviewed the literature on internal capital markets, then used two methods of normative and empirical to transaction cost theory, principal agent theory and the theory of corporate governance as a theoretical basis for this article, used corporate governance factors on the internal capital market Efficiency for the study, detailed analysis of the stock structure, board characteristics and management incentives such as corporate governance, three main factors influence the internal capital market efficiency. To verify the hypothesis, according to this available data of listed companies required screening, this paper used some statistical software multiple regression analysis, empirical results show that: (1)ownership concentration and the efficiency of internal capital markets was a significant positive correlation; (2) control and cash flow between the right degree of internal capital market efficiency was a significant negative correlation; (3) Managerial Ownership and the efficiency of internal capital markets was a significant positive correlation; (4) state the nature of the internal capital market is not conducive to internal capital market efficiency of the play; (5) proportion of independent directors and the internal capital market efficiency was a significant positive correlation; (6) management compensation and internal capital market efficiency was a significant positive correlation; (7) state-owned share proportion and the board size and the internal capital market efficiency is not significant relationship. Finally, according to empirical conclusions, the paper summarized the proposed relevant policies and proposals and points out the shortcomings and prospects for future research.