Research On Internal Capital Market Based On Diversification Strategy

With the continuous improvement of the socialist market economic system and reform gradually into the mature,the market has become the decisive factor in the allocation of resources.Some of the benefits of poor state-owned enterprises ushered in the dawn of mergers and acquisitions,which also let some private enterprise groups bigger and stronger.At the present time,large and diversified enterprises are organized in the form of groups exist.The construction of the internal capital market will follow the establishment of a large group.The results show that the internal capital market can optimize the allocation of resources of the state-owned enterprises and private enterprises,and it can also ease the pressure of external financing.The function of the internal capital market has been recognized by many scholars at home and abroad,but the operation and efficiency of the internal capital markets seems not that consistent in practice,also,some internal capital market function will be alienated,internal capital market become a platform which makes the largest shareholder to transfer benefits.Therefore,lots of problems in the practice of internal capital market are needed to be researched.It is worth noting that the capital market which exists in the enterprise group will also be affected by the strategic change.The realization of the group's strategic objectives is inseparable from the internal capital market.By the impact of our social system,the capital market is not mature.And the advantages of the capital market will be more obvious.Besides the enterprise groups in China are different from the overall listing of the abroad company,the main internal capital market structure is more complex,therefore our country enterprise group's internal capital market operation mechanism should not copy the experience of western countries,and need to considerate based on the actual situation,however,the academic research in this area is still relatively vacant.The research of the enterprise group under the guidance of the strategy,according to their own operating conditions and the main business to build,expand and optimized internal capital markets and a series of problems have significant theory and practice meaning for the enterprise groups in China.This paper has adopted a research method combining normative research with case analysis.In normative research part,reviews and summarizes the related literature at home and abroad,an overview of the theory of internal capital market connotation,operation mechanism,implementation efficiency and diversification strategy and its relationship with internal capital market.In the part of case analysis,to our country agriculture and animal husbandry industry brought New Hope Group in the enterprise as the research object,study the new hope of internal capital market diversification strategy in the process of building,and broaden the optimization process and mode of operation.Then calculate the efficiency of its internal capital market.Finally,this paper draws a conclusion that the internal capital market of the New Hope Group is effective,and puts forward some opinions and suggestions.This paper is divided into five parts: The first chapter is introduction.This chapter introduces the research background and significance,it also reviews the diversification strategy and the domestic and foreign literature of internal capital market,then this part introduces the research ideas,research methods and structure,make a description about innovation of this paper.The second chapter is theoretical overview.Introduces the theory related to this paper.The third chapter is the case introduction.This chapter mainly introduces the organizational structure and diversification strategy of the New Hope Group,as well as the process of the New Hope Group from a single farming and animal husbandry to a diversified enterprise.The fourth chapter is to analyze the operation of the internal capital market under the New Hope diversification strategy,which is divided into four parts.In the first two part,the author introduces the process of establishing the internal capital market based on diversification strategy and the mode of operation of the internal capital market.The third part is the calculation of the efficient ratio measurement of the New Hope Group from 2010 to 2015 in the internal capital market.The fourth part introduces the successful experience of the internal capital market operation of the New Hope Group.The fifth chapter is the conclusion and suggestion.The innovation of this paper lies in using the form of case analysis,analyzing the operation of the New Hope internal capital market,providing the practical research for the implementation of strategic management of enterprise group,and providing references for the development of internal capital market of enterprise group in China.There are two shortcomings in this article.First,the information in the non-listed company is not disclosing,and it is difficult to obtain the information from the outside,therefore,there is no detailed understanding of this part of the capital operation in this situation.Second,the non-listed company's financial data can not be obtained when the internal capital market efficiency is calculated,we can only measure the efficiency of listed companies to infer whether it is effective.