State-owned Enterprise Groups Internal Capital Market Research

Internal Capital Market (ICM) is a kind of financing and capital allocation mechanism in the state business groups .Since Williamson put forward "internal capital market" concept, ICM theories has been one of the hotspot problem in economics in domestic and international area. For the purpose of analysing process accurately and getting the right conclusion, This paper contracts the research category, only investigating the internal capital market in the state business groups of china .Although the formation and development of the state business groups are the result that the government pushes directly, we consider that the deep reason of The state business groups formation and development are that because of the low efficiency in exterior capital market (ECM), the internal capital market in the state business groups acts for the working that the exterior capital market perform. From this meaning, the development of the state business groups is the development of ICM.According to be from sensibility to nous, from practice to theories and from financing to capital allocation, the paper analyzed the financing and capital allocation in the state business groups .Aim at the fact that the former despises the internal capital market financing theories research, this paper explain the financing theories as a emphases. referring to not only the advantage of ICM but also the excessive financing behavior of the state business groups, at the end of the chapter we introduce "the exhaust effect" of the ICM.At the analyse of the capital allocation function in ICM , We consider a lot of factors , including the manufacture market ,the changing of domain and the manage mechanism in the state business groups .We research the aspect of the efficient and the inefficiency aspect of the ICM in the state business groups. This paper also analyze the blandish phenomena of...