Analysis On The Efficiency Of The Icm Of Stripes’ Listed Company And Its Governance

Economic resource must be concerned it’s allocative efficiency. As a scarce economic resource, it is especially important that we discuss how to allocate it effectively in modern economy. As two vital parts in the social capital allocation, the existence and development of external and internal capital markets are equally important. Ever since the internal capital market theory was proposed in the1970’s, with the development of enterprise diversification and M&A, internal capital market has become a new research field in abroad academia and has been more intensive and standard. And now it is regarded as the most important internal capital allocative theory. However, the scholars’ study on internal capital market in China is still in its beginning stage, and lacks systematic research findings.The ability to create internal capital markets is the prominent characteristic of business group, in the case of the external capital market is underdeveloped, the internal capital maket will expand the financing channels, ease the external financing constraints. Since the reform and open-up, the business groups developing by M&A have become the vital force in the national economy. With the development of business group, the inner capital allocation activities between the headquarters and subsidiaries have increasingly drawn the outside attention. Meanwhile,ultimate controllers of some private-controlled companies in securities markets have established a series of "faction enterprises", such as "wanxiang","delong","fuxing" and "tuopu" etc, capital allocation between headquarters and subsidiaries including listed and non-listed companies and within subsidiaries is active. However, because of the abuse of inside trading, business groups have suffered a serious financial crisis and may be in trouble.The complex organization construction on which internal capital market relies causes corporate governance problems, great governance environment is the operating basic of the internal capital market. At present, the mechanism of our company governance is still not perfect, internal capital market extremely easily alienation to benefit expropriation tools of controlling shareholders, and appear low efficiency. Therefore, further study on internal capital allocation efficiency of the business groups and its governance mechanism for the transition period China’s economy has vital theoretical and practical significance. Based on the present governance situation of internal capital market, the paper takes faction enterprises as sample and empirically tests the existence and efficiency of internal capital market management in our country, and it further tests the equity properties, characteristics and internal control association capital takes up to the internal factors such as capital allocation efficiency. At last, the conclusion of the study is drawn and suggestions are put forward.