The Research On ICM Efficiency Of Group Listed Company

Since the reform and opening up,China's economy has developed rapidly,and enterprises have greatly improved in various aspects,such as management.Large-scale enterprise groups have been formed through equity participation and M&A.The internal capital market promotes the efficiency of capital allocation within the group,whether it is a state-owned enterprise or a private enterprise.In 1997,Stein proposed the concept of selecting outstanding program.That is to say,the Group Headquarters obtain information from internal channels through unified regulation of branches.This information includes real financial status,business performance and long-term development.The headquarters will analyze the information based on the return of investment.High-level divisions or subsidiaries are selected to ensure that resources,which are effective and maximized.Therefore,improving the operational efficiency of the ICM of the enterprise group,and further enhancing the comprehensive strength of domestic enterprise groups,can promote the development of the domestic economy and capital market.This paper starts with the role of ICM on the group and the factors affecting the efficiency of the internal capital market.It analyzes in depth how the internal capital market of China Resources Group,a large industrial empire,operates and how to achieve its efficiency.This article has five chapters:The first chapter introduces the background and significance of the research group's ICM,and summarizes the innovations and deficiencies of this paper.The second chapter is literature review.It summarizes the views of domestic and foreign scholars on the effectiveness of ICM,The ICM operation mode,influencing factors and diversification strategies mentioned in the domestic and foreign literatures and so on.The third chapter gives a detailed introduction to the case China Resources Group.The first is the introduction of the group's profile and organizational structure,followed by the specific analysis of China Resources' internal capital market process.Finally,this internal capital market brings the China Resources Group headquarters and its subsidiaries the benefits.The fourth chapter,by APS model to measure the efficiency of China Resources Group's ICM,focuses on the factors affecting the ICM operational efficiency,mainly from the perspective of property rights,diversification,corporate governance structure and internal financial platform system.The fifth chapter is a summary of the entire case analysis,combined with theory and case analysis,proposes the corresponding internal capital market optimization recommendations.Most of the literature on ICM of the group is researched by empirical analysis.Therefore,this paper starts from the role of ICM in the group and the factors affecting the efficiency of ICM,and analyzes the inside of the huge industrial empire of China Resources Group.How ICM works and how to achieve its efficiency.However,there are still many shortcomings in the text.In terms of indicator analysis,since this paper is a typical case analysis,there is no empirical analysis involving a large amount of data.Therefore,the calculation formula is simplified,which may influence the accuracy of the conclusion.