Resources Allocation And Value Creation Effect Of Internal Capital Market In Vanke Group

With the rapid development of economy,small and medium enterprises have formed a large number of large enterprise groups,in which the internal capital markets are ubiquitous,through mergers and acquisitions.Internal capital market,as a kind of internal resources,can play a role in alleviating the financing constraints,increasing the service efficiency of funds,and reducing the financing cost,thus to create value for enterprises.However,previous studies have shown that,within the diversified enterprise group,the resources allocation of internal capital market is inefficient,and has no significant effect of value creation,even does harm to the enterprise value.At first,theoretical bases about resources allocation and value creation effect of internal capital market were expounded and analyzed.Then,basic conditions for effective allocation resources were summarized from previous studies,and the value creation of internal capital market was theoretically analyzed.Apart from this,we found that Vanke group,in the process of its development,satisfied the basic conditions for internal capital markets resources to allocate effectively through the study of resources allocation of internal capital market in Vanke group.And the role of internal capital markets resources in the process of resource allocation was analysied.Then,the value creation effect of internal capital market resources allocation in Vanke group was interpreted in two aspects including promoting the overall value and creating extra value for the group,and it was compared with enterprises in the same industry,which proved that the value creation effect of internal capital market resources allocation in vanke group is far superior to that in other enterprises.Finally,we summarized the main reasons for Vanke group's internal capital market resources allocation to affect the effect of value creation through analyzing the value creation process of internal capital market resources allocation in Vanke group,and put forward the corresponding suggestions for large enterprise groups in China to allocate resources more effectively.