Research On The Internal Capital Market Operation And Efficiency Of Faction Enterprises

With the development and improvement of China’s market economy system,a large number of faction enterprises have emerged and exerted increasingly important influence in the capital market.Looking at the development status of faction enterprises in China,internal capital markets play an important role in the capital allocation.Faction enterprises rely on internal capital markets to achieve endogenous financing,optimize capital allocation,and carry out industrial integration.but some companies have emerged the problem that the alienation of internal capital market functions.At the same time,the "Thirteenth Five-Year Plan" clearly proposes to encourage mergers and acquisitions of enterprises to form a large-scale enterprise group as the core organizational form.The faction enterprise is an important form of large-scale enterprise groups.In order to study faction enterprises internal capital market,it is possible to analyze the operation of the internal capital market in the context of a large system.Based on the above situation,this essay on the basis of sorting out the domestic and foreign research results,takes the leading enterprise in China’s faction enterprises-Holley group as a case study object to explore the operation of the Holley group’s internal capital market.The existing problems of the group propose corresponding solutions.The research analysis of this article is divided into six parts.First,elaborate the background and significance of the topic of the article,summarize and sort out the domestic and foreign literature from the aspects of faction enterprises and internal capital markets.Second,summarize the domestic and foreign theories of internal capital market research and analysis,and introduce the measure methods of internalcapital market efficiency,which provides a theoretical foundation for the case study in this article.Third,introduce the situation of the Holley group,and and clarify the construction process of the Holley group’s internal capital market.Fourth,combine data to analyze the operation mode of Holley group’s internal capital market.Fifth,use the cash flow sensitivity coefficient method based on the return of assets in the previous period to measure the efficiency of Holley group,and combine the performance analysis results of Holley group’s internal listed companies to evaluate the results.For further explanation,the conclusion that Holley group’s internal capital market operation is effective but low efficiency is,and finally it’s influencing factors are analyzed.Sixth,based on the case of Holley group,put forward relevant suggestions for the operation of the faction enterprise’s internal capital market.It is hoped that the relevant suggestions made through the research on the Holley group can provide valuable reference for the development of the internal capital market of other faction enterprise.