Study On The Internal Capital Market Operation And Efficiency Of Bailian Group

With the development of market economy,the organization form of Chinese enterprises is changing and evolving.It is developed from a single business organization into divisional organization,and then gradually developed into the enterprise group,which is parent company holding and combine the characteristics of both M and H organizations.The establishment of the enterprise group strengthened the contact between business units,and also promoted the formation of the internal capital market.Chinese research on the internal capital market began in the 1990 s,but has not yet formed a systematic research framework.The relationship between diversification and internal capital market has been studied by many scholars at home and abroad,and the research shows that diversification is not a necessary condition for the existence of internal capital market.Too high degree of diversification may otherwise reduce the efficiency of internal capital market allocation.The literature study in recent years found that the internal capital market under the specialization business strategy was able to play a positive role in capital allocation.The subject of this paper was the leading enterprise of Chinese commercial and trade logistics industry,the state-owned enterprises——Bailian Group.Based on the methods of literature research,case study and qualitative and quantitative research,this paper first made a systematic study on the domestic and foreign literatures and the internal capital market theory.Then,it analyzed the construction process and operation mode of the internal capital market,and then calculated the efficiency of the internal capital market operation by the mathmatic model.On above basis,this paper analyzed the positive effect of Bailian Group's specialization strategy on the internal capital market operation and the existing problems of its internal capital market,then finally reached the relevant conclusions and put forward the recommendations on developing the internal capital market within state-owned groups,that is,implement appropriate development strategies,strengthen the construction of management model,promote overall listing of the Group and standardized operation of internal capital market.The main contribution of this paper is to deepen the research on the efficiency of internal capital market under specialization business strategy and fill up the blank of case study in this area,which is of great significance to promote the theoretical research in the field of internal capital market.