Enterprise Group Internal Capital Market Fund Management Model Research

Since2000, under the guidelines of "bigger and stronger" policy of the country, a growing number of large enterprise groups have sprung up. A lot of enterprise groups has become the cross-industry and cross-regional development ones. At the same time, they make their efforts to make themselves into the international enterprise groups. With the international pace of of Chinese enterprise group quickened, some of the enterprise groups have carried on the positive exploration and intentional attempt to build the suitable capital management mode for their own organization structure characteristics of internal capital market. But the research in the aspect of theory and method system is relatively less, especially in the enterprise group organization structure and internal capital market capital management pattern matching selection research.Based on the above situation, this article starts from the overview of the enterprise group organization structure and internal capital market fund management model and makes the contrast research on the basic content and method between enterprise group internal capital market fund management modes of different organizational structures. At the same time, in order to make better demonstration analysis, this paper will choose HX business group which has adopted different organizational structures in different periods as the research object.. The purpose of this paper is to build the financing management mode in accordance with the characteristics of internal capital market through the study of enterprise groups under the different organizational structures. Further, I hope that it can make the internal capital market the positive role in alleviating the financing constraints, saving the cost of capital, optimizing the allocation of resources, and reducing the financial risk, etc.In this paper, by selecting HX enterprise group which adopts different organizational structures in different development periods as the case, I want to discuss how to choose and build internal capital markets practice-group internal capital market fund management mode under different organizational structure of enterprise group. The article is divided into five parts:Firstly, introduction. It briefly introduces the research background, research significance, research method, the research thought and framework of this paper. Finally the anticipated contribution is added.Secondly, the literature review. First of all,this section describes the research situation of financing management mode of internal capital market.Then, financing management mode of internal capital market and related theoretical research is reviewed and points out the deficiency of existing research results. Finally, theoretical basis of financing management mode of internal capital market is added.Thirdly, overview of business group internal capital market capital management mode. Firstly, this part introduces the definition and the basic type of enterprise group organization structure. Then M type and H type organizations that the article focuses on are made further analysis, In the process of further analysis, this paper introduces the definition, characteristics and advantages and disadvantages of M type and H type organization structure.Then,this part gives a general overview of business group internal capital market and introduces the definition and the function of business group internal capital market, and the unique characteristics of business group internal capital market in China. Then, the fund management mode of internal capital market is summarized and the definition and the main duties of three major fund management modes are further induced. Finally, the advantages and disadvantages of three kinds of internal capital market financing management mode are made comparative analysis.Fourthly, case analysis. this article selects HX business group that has adopted different organizational structures in different development periods as the case. First of all, the article briefly introduces basic situation of HX group. Then, how to set the institution sin and divide power and responsibility between group headquarters and subordinate units in different development stages is analyzed Then, the article analyzes and compares institutions, business processes, business operation efficiency under the different organizational structures. Finally, the article reveals what the case brings us.Fifthly, the research proposal. On the basis of theoretical analysis and case analysis above,this part makes suggestions in fund management mode selection and construction of business group internal capital market in China. It mainly includes that the internal capital market capital management model must match the enterprise group organization structure, internal capital market capital management model must be adapted to the development strategy of the enterprise group and the internal capital market capital management mode should be correspond to enterprise group’s stage of development.Compared with other literature, the main contribution of this paper includes: firstly, the current research literature about business group internal capital market mainly concentrates in the existence of internal capital market, the allocation efficiency of internal capital market, but in this paper, the research emphasis is the enterprise group internal capital market financing management mode selection and construction. Secondly, this paper applies comparative analysis method to study how to choose suitable internal capital market financing management mode which is suitable to the characteristics of enterprise groups under the different organizational structures and enriches the related research theory of business group internal capital market. Thirdly, the current research literature about business group internal capital market in general is empirically tested on the data of the listed company or theory analysis on the enterprise group fund management mode of internal capital market, this article applies case analysis. Choosing HX business group that adopts different organizational structures in different development periods as the case demonstrates how to choose the different organizational structures and building the fund management mode of internal capital markets in the practice of enterprise groups. But the deficiency of this article is obvious:the conclusion of this paper is based on the analysis and research of one enterprise group. At the same time,this paper fails to control the enterprise operation management, external operating environment and other factors on the internal capital market capital management mode selection. I make every effort to research and analysis to get reliable conclusions, but it maybe produce biased results finally.