Comparison And Selection Of Internal Financing Model In Enterprise Groups

As a fact，it is definitely hard for enterprises to finance externally in China. The externalcapital market is relatively weak as the country has just established the socialist marketeconomy system over30years. Enterprises encountered difficulties greater than ever inexternal financing after the global financial crisis occurred in2008. In that case，how to getsustained development through proper internal financing model， high efficiency inallocating internal fund as well as less dependency on external financing is of crucialimportance for enterprises，especially for enterprise groups. That’s the point what this essaywill focus on.People’s opinions differ from each other on similar researches. Based on internal capitalmarket theories，however，this essay innovates by studying the case of F Group. I analyzedthe internal financing models of some big enterprise groups seeking to select one suit for FGroup and to supply reference for other groups. In my perspective，it is recommended tochoose an internal financing model on the basis that interests of agency relationship at alllevels have been considered.