Research On The Internal Capital Market Efficiency Of China State Construction Engineering Corporation

Enterprise group is an common enterprise organization form in our market economy, there is widespread enterprise group internal the internal capital market.With the increasing maturity of Chinese enterprise groups, the function of its internal capital market is more and more prominent. Enterprise group any operational activity is likely to influence the its internal capital market. There are a lot of bad phenomena which restrict the internal capital market to play a role, and even make the internal capital market theory as a tool to plunder the interests, seriously damage the group members value and the relevant investors interests, and ultimately reduce the overall value of the enterprise group. This paper studies the correlativity between enterprise group inside governance factors and internal capital market. That has an important significance to explore the internal capital movement rules of enterprise group, to clear the reason which causes the enterprise group capital allocation efficiency low, and to make measures to improve the enterprise group internal capital market efficiency.Based on the theory study about the internal capital market related concepts,existence and efficiency, this paper takes China state construction engineering corporation as the research sample. Firstly, this paper makes a deep delicate analysis to the internal capital market operation form, constructing process and allocation efficiency of China state construction engineering corporation. Secondly, according to the internal capital market operation and financial statement related data, this paper is from some aspects such as flows expense, parent firm receivables and payables, to define the internal capital market operational efficiency influence factors. Meanwhile this paper carries out empirical study.Lastly, this paper makes recommendations on promote the internal capital market of China state construction engineering corporation from the pints of internal governance, perfecting functioning mechanism and institutional guarantee. Such this paper can provide reference for the other enterprise group which attempt to improve internal capital market operation efficiency.