The Efficiency Of Internal Capital Market And Risk Control Of China's Listed Companies

Since the reform and opening up,along with the rapid development of China's market economy,enterprise groups have increasingly become an important form of corporate organization in our country.More and more companies are expanding and developing in the direction of collectivization.This has led to the emergence of the Internal Capital Market(ICM).Numerous studies have shown that the company's internal capital market has more advantages than the external capital market,such as information advantages,supervision and incentive advantages,etc.These have all alleviated the financing constraints of enterprises to some extent;at the same time,the residual control right of the company's headquarters enable the funds to be managed centrally,which helps to improve the efficiency of resource allocation.However,it is also believed by scholars that due to the existence of problems such as over-investment,agency costs,and transfer of interests of large shareholders,the function of the internal capital market is,to a certain extent,inefficient.In addition,the internal capital market operations that overemphasize mutual guarantees,mortgage loans,etc.will inevitably lead to an increase in corporate financial leverage,and thus increase the financial risks faced by the company.Therefore,based on China's economic environment and institutional background,this paper based on the theoretical framework of the internal capital market research,and combined with the case studies of Hakim Unique,a company that is currently undergoing a group expansion,deeply explored the causes of its internal capital market operations.The operational process and operational consequences,focusing on the impact of its internal capital market operations on corporate financing constraints and resource allocation efficiency,while using the revised Z-Score risk early warning model and the revised F score model to assess the financial status of the company.Finally came to the conclusion: Hakim Unique's internal capital market operation effectively alleviated the financing constraints faced by the company,optimized the efficiency of resource allocation,and avoided the financial crisis triggered by the increase in financial leverage through a good strategic layout.That's all led Hakim Unique continuing to develop steadily and healthily.The main contribution of this paper is to use the research object,Hakim Unique,to measure the effectiveness of China's internal capital market according to China's national conditions,and to use the overall theoretical framework of internal capital market operation to make a comprehensive and systematic analyses of the internal capital market of Hakim Unique,especially the analysis of its specific operation methods.That will be more clearly and deeply demonstrated the operating mechanism of Hakim Unique's internal capital market;at the same time,Financial risks were evaluated early warning.The above content not only provides new ideas for the case studies of internal capital markets,but also has certain reference and reference significance for other similar companies.