The Construction And Effect Evaluation Of Internal Capital Market In The Enterprise Groups

In China, the enterprise group is an organizational form. Our country enterprise diversification strategy although started later, but also has been more than ten years. In recent years, with the development of enterprise group diversification, the construction of internal capital market has pay attention to scholars. Internal capital markets have become more important to the enterprise group. More important is China's capital market has only one big shareholder who possibly Minority shareholder interests infringed. Based on the internal capital markets in DaTang group, through the way of internal capital markets, motivation, and the effect of internal capital allocation, we found that the enterprise group's internal existence "tunneling" and "support" phenomenon. Enterprise groups based on their strategic plan to allocate funds to their member.We cannot judge the efficiency of internal capital market by interests conveys. Combined with the specific conditions in China, the research of internal capital market's economic consequences, not only extend the connotation of the capital market, and improve internal capital market theory, but also solve the enterprise group's internal capital operation.This paper mainly researches construction of internal capital market and effect based on the internal capital markets in DaTang group. The paper is divided into five parts:the first part mainly introduces the background, significance,, researching methods, finally the main contribution and deficiencies of this paper. The second part is the basic theory of internal capital market. This chapter firstly introduces domestic and international research achievements, whereby the extracts the review on the problems existing in the research. Then we state the definition, characteristics, function and its applied theory. The third part explains the methods enterprise group applying to build internal capital markets. The fourth part according to the internal capital markets in DaTang group, we analyses its effect. The fifth part is mainly about how to establish the internal capital market. This paper has four features:firstly, this paper defines internal capital market from multiple angles; Secondly, the paper adopts direct measuring index; Thirdly Article based on a group enterprise selects the appropriate financial indicators, and evaluates the efficiency of internal capital market. This model is improved for effect and strategic goal. Fourthly, this paper will combine economics and management. And we think we cannot judge simply depend on efficiency whether internal capital allocation is optimization. We still need consider the enterprise's own strategy development. Because DaTang group has not whole appeared on the market, and its internal trade information is not full disclosure, we only collect the data disclosed by publicly traded companies as the reference standard.