Research On The Internal Capital Market Operation And Its Efficiency In Founder Group

With the globalization and diversification become the intrinsic requirement for enterprises` development, United States set off a massive wave of mergers and acquisitions, many enterprises` mergers and acquisitions of others formed a number of conglomerates in the mid-20 th century. These conglomerates take advantage of their scale to help group members to financing more money out of the group while group members raise capital. Capital flow and configuration among members around the capital trigger the competition of each group member, the form of internal capital markets within the group.Since the reform and opening up, our country`s economy entered a stage of rapid development, the number of conglomerates in China continues to increase and the money demand of these conglomerates continue to expand. However, the imperfect external capital market cannot meet their funding needs, so to build the internal capital markets become a reality requirement of conglomerates` development. Nowadays, conglomerates have become a common organizational form in market economy in our country and their developments are paid more attention. Therefore, the research of conglomerates` internal capital market operation mode and operation efficiency has important practical significance. Based on the predecessor`s study results and select Founder Group as target conglomerate, this paper studied the operation mode of internal capital market in Founder Group and studied its efficiency through efficiency measurement and factors influence it. Conglomerates based on their strategic plan to allocate resources to their members, we cannot judge the efficiency of internal capital market just because it not fully follow the principle of “efficiency first”. Combined with the specific backgrounds in China to study the internal capital market`s operation and its efficiency so to forward some countermeasures has important practical significance.This paper consists of five chapters. Chapter ?,introduction of this paper. Elaborate the background, purpose,structure and meaning of this paper. Chapter?,analysis of conglomerates` internal capital markets development and factors influence its efficiency in our country. Chapter ? and Chapter ? is a case study. Take Founder Group as an example, study the typical modes and evaluate the efficiency of its internal capital market operation. Chapter ?,the conclusions and recommendations. Make conclusions based on the above theoretical foundation and case studies and also put forward the corresponding suggestions.