Research On Group Internal Capital Allocation Efficiency Based On The Corporate Investment Perspective

Enterprise group internal capital market allocation problem has draw the attentionof people for a long time, in the theoretical circle, the theory of internal capital marketallocation of effective and ineffective has been a focus of contention. The allocationefficiency of internal capital markets does not form a unanimous conclusion amongresearchers. One of the important reason is that measuring the enterprise group internalcapital market allocation efficiency on the is inconsistent, and mostly failed tointuitively reflects the essence of capital allocation: the group capital from low incomedepartment to high income department. On the basis of existing research, this paper tryto study the efficiency of investment allocation efficiency of internal capital marketsfrom a new perspective that the group’s internal capital allocation can play a "winneselection" function, and improve the investment efficiency.This thesis first reviews the related literature at home and abroad about businessgroup internal capital market, and then analyzed the reasons of business group internalcapital allocation impact corporate investment efficiency and how to influence theefficiency of investment. Thesis analyzes believed that if capital allocation of internalcapital market is effective, The enterprise group can distribute the group’s capitalallocation to the optimal project according to the information, it would curboverinvestment, and alleviate inadequate investment, so as to improve the efficiency ofinvestment. Based on theoretical analysis, we use the abnormal related party outflowand inflow as substitution variables of business group internal capital allocation, torepresent the enterprise group’s internal capital allocation money flows. And then Usethe empirical analysis method, and select the2011-2013, relevant financial andnon-financial data of listed companies as samples, and draw lessons from Richardsonmodel and Jian and Wang (2010) model respectively to detect the main variables, andthen through the establishment of multiple linear regression model to test the proposedresearch hypotheses. The empirical results show that the abnormal related partyoutflows have negative correlation with excessive investment, and abnormal relatedparty inflows have negative correlation with inadequate investment. This shows that ourcountry enterprise group internal capital allocation can inhibit the excessive investment,and alleviate the underinvestment, and reflect the group capital from low income to highincome, so as to improve the efficiency of investment. That is to say, our country enterprise group’s internal capital market allocation give play to the role of the "winnerselection", its configuration is valid.On the one hand, the thesis provided a new theoretical evidence for our countryenterprise group the allocation efficiency of internal capital markets, helps to enrich ourcountry enterprise group internal capital market theory study. On the other hand, thethesis provides theoretical support and practical reference for optimizing the resourceallocation of enterprise group and promote enterprise group.