Research On The Listed Companies Internal Capital Market Efficiency In China And Affecting Factors

Advances Internal capital market is mainly due to the failure of the traditional capital market emerge. But the traditional capital market failure is mainly due to the produce of the external capital market’s information asymmetry and agent problems. And that leads to the inefficient efficiency. Enterprises turned to rely on internal capital market financing, and internal market makes up for the defects of the external. Capital is allocated to the branch or subsidiary through the internal capital market, thus allocated to various investment projects further. And social capital efficiency is the core issue of economics and its efficiency is the focus of corporate finance. For a long time, research on the efficiency of capital market is mainly concentrated on the external capital market, but on internal capital market efficiency is relatively much less.As in recent years annual report of China’s listing Corporation on the disclosure of segment is becoming more perfect. Therefore China’s A shares of listing Corporation disclosing segment data in the annual report are the research object of this article. Through analyzing the main factors which influence the efficiency of internal capital market, this article carries on the appraisal to the efficiency of internal capital market, and puts forward policy recommendations to improve the efficiency of internal capital market.This paper elaborates the theory related to the internal capital market and its efficiency, summarizes the relevant characteristics of internal capital market listing Corporation, expounds the research on empirical model to measure the efficiency of internal capital market and measures the efficiency of internal capital market by using the improved evaluation model. This article forms the framework of the factors influencing the efficiency of internal capital market, from the corporate governance level, internal capital market scale and other aspects. According to the empirical results, this paper put forward advice to improving the efficiency of internal capital markets.