The Research On Influence Factors Of Internal Capital Markets' Effectiveness In Enterprises Groups

For the internal capital market in enterprises groups,one of the functions that the enterprises need is to alleviate the financing constraints in order to enhance the efficiency of the resource allocation.Thus,utilizing the function and characteristics of internal capital market to realize the value increment has become one of the necessary approaches for enterprise groups' development.At the beginning of studying internal capital market,domestic and foreign experts and scholars focus on the perspective of diversified enterprise groups.The headquarters of the groups collected information on the rate of return of different businesses and sorted them from high to low.As a result,the business which has a high information rate of return can take the advantage of recourse allocation.The purpose of this method is to realize the high-efficiency of utilizing limited capital in order to achieve the performance maximization.As the development of the social economy,experts and scholars found that specialized enterprise groups also exist internal capital markets.Therefore,the hot topic of the research which has become prevalent among specialists and scholars is as following.The approach is that enterprises need to improve the effectiveness,develop the positive impact of the internal capital market and foster it to become the booster of the company's progress.This paper can be divided into three parts.Firstly,this paper sorts and analyzes numbers of domestic and foreign related literatures about internal capital market concepts.Secondly,this paper analyses some factors which affect the effectiveness of internal capital markets basing on some theories deeply such as transaction costs,information asymmetry,double agent and economies of scale.Thirdly,the paper puts forward some related hypothesis and sets up empirical models.According to this,583 listed companies of private enterprise groups from 2013 to 2017 are selected as the research objects.Using discriminant analysis method to test the factors which influence the effectiveness of internal capital market among enterprise groups.Finally,the paper submits several proposals and to help enterprise managers to strengthen the effectiveness of internal capital market.