The Influence Of Diversification Of Family - Based Enterprises On The Efficiency Of Internal Capital Market

Since the imperfect condition of the external capital market. China’s internal capital market going to the growth stage. Emerging "lineage" of the enterprise, is a strong evidence for the development of internal capital markets. The relationship of internal capital market efficiency and the diversified model development has not got a definite answer. This paper try to explore the relationship of the level of diversification and the internal capital market efficiency by analyzing Fuxing company and its 2 listed subsidiary, Yuyuan Market and Nangang Stock. After analyzing these three companies’8 years financial data, we found that the relationship of the degree of diversification and the internal capital market efficiency is not necessarily a positive or negative correlation. After the diversification, Fuxing International company improve the efficiency of internal capital markets, but the efficiency of internal capital markets of Nangang Stock did not work well after trying to diversified development strategy. In Yuyuan Market, there is no linear relationship between degree of diversification and internal capital markets. The contribution of this paper lies in the branch "Lineage" enterprise data as the research material, it is concluded that the relationship between degree of diversification and the internal capital market efficiency is not necessarily so-called direct or inverse relationship.