China's A-share Listed Company's Internal Capital Market Efficiency Research

In our country, the enterprise group has already become prevalent forms of organization and the most important part of the national economy. The capital of Enterprise group is disposed through two markets. One is external capital market, and another is internal capital market. First, social capital is disposed for a variety of different forms of enterprises through the external capital market, then the enterprise distribute the capital to each division, subsidiary or different investment project through the external capital market. As social capital allocation efficiency is the core issue in economic research, internal capital allocation efficiency is the core issue of corporate finance. However, the research on efficiency of capital allocation has long focused on the external capital market. The research on efficiency of internal capital markets is much less. As the deficiency of the segment information, there is little research on A share listed companies. In recent years, annual reports of Listed Companies in China provide more division data with each passing day. The study evaluate the efficiency of internal capital market of the listed companies in China, analyze the main factors influencing the efficiency of internal capital market, and put forward a proposal of improving efficiency of internal capital market choosing A share listed companies in China as samples.This research elaborated the basic connotation of internal capital market, summarized the characteristics of the internal capital market of the enterprise groups and listed company. A base on the achievement of domestic and overseas scholars, the research modifies and validates the empirical measure model about the efficiency of internal capital market. Then it evaluates the efficiency of internal capital market of A share listed companies in China with the new model. On this condition, this research analyzes the external factor and internal factor influencing the efficiency of the internal capital market, and validates the factors influencing the efficiency of the internal capital market. The results show that the executives of the listed company of our country play a limited role in the course of resource distributing. Concentrated ownership can improve the efficiency of resource allocation. The separation of control right and cash flow right did not lead to the low efficiency of the allocation of the resources of listed companies. The efficiency of the allocation of the resources of Government shareholding enterprise is lower. The efficiency of the allocation of the resources of large diversified enterprise is higher. The bigger the scale of internal capital, the higher the efficiency of resource allocation. Establishing the internal financial intermediation is conducive to improving the efficiency of resources allocation. According to the empirical results, This study put forward suggestions about constructing effective internal capital market from5aspects:the construction of headquarters, the construction of divisions, the scale of internal capital market, the construction of internal financial intermediation and the construction of internal resource allocation mechanism.