Research On The Impact Of Internal Capital Market Efficiency On Financial Crisis Of Listed Companies

In recent years,more and more companies have become competitive in order to achieve capital expansion,and have become enterprise groups through joint and mergers and acquisitions.Enterprise groups have become one of the indispensable forces for China's economic growth.At the same time,many enterprise groups have neglected the concern about the company's financial risks while pursuing business performance.The examples of financial crisis are not uncommon.According to the safety assessment report of non-financial listed companies issued by the Ministry of Commerce in 2017,the financial security index of non-financial listed companies in China is the lowest in the past decade.This shows that studying the causes of financial crisis and strengthening the prevention and control of financial crisis is extremely important for the sustained and healthy development of enterprises or enterprise groups,especially for the research and prevention of financial crisis of enterprise groups.The main reason is that compared with non-enterprise groups,one of the important characteristics of enterprise groups is the formation of internal capital markets,and the efficiency of internal capital market operations will directly or indirectly affect the financial status of member companies of enterprise groups.Based on the internal capital market operation mode,this paper studies the impact of internal capital market efficiency on the financial crisis of listed companies,and helps enterprise groups improve their internal capital market efficiency,improve the effectiveness of internal capital allocation,and reduce the probability of their listed companies falling into financial crisis.It is of great theoretical and practical significance to clarify the causes of the financial crisis of enterprise groups.This paper uses transaction cost theory,principal-agent theory,and superior order financing theory to study the relationship between internal capital market efficiency and financial crisis of listed companies.Firstly,the research results of domestic and foreign scholars on the efficiency of internal capital market and the financial crisis of listed companies were compiled and reviewed.Secondly,it analyzes the factors affecting the efficiency of internal capital market and the factors affecting the financial crisis of listed companies,analyzes the path of internal capital market efficiency on the financial crisis of listed companies,and makes theoretical deductions,and puts forward the research hypothesis of this paper.Characteristic factors carry out empirical research.Specifically,this paper examines the following research hypotheses in turn: First,will internal capital market efficiency affect the financial crisis? Is there a lag period effect? Second,is the impact of internal capital market efficiency on the financial crisis affected by other factors?Based on the degree of diversification,internal control quality,and property rights,this paper analyzes the impact of internal capital market sales on financial crisis in different contexts.Third,does the impact of non-corporate collective internal capital market efficiency on its financial crisis?The study found that:(1)internal capital market efficiency will affect the financial crisis.The lower the efficiency of the internal capital market,the greater the possibility that the enterprise group will fall into a financial crisis.This phenomenon exists in the T-1,T-2,and T-3 years,that is,the internal capital market with low efficiency in the third period will be financial.The crisis has a negative impact.(2)The higher the degree of diversification,the weaker the impact of internal capital market efficiency on the financial crisis.The lower the degree of diversification,the greater the impact of internal capital market efficiency on the financial crisis,and this effect exists in the third phase of lag.(3)Under the high-quality internal control system,the impact of internal capital market efficiency on the financial crisis only exists in the first phase.Under the low-quality internal control system,the impact of internal capital market efficiency on the financial crisis lags behind three phases.(4)Compared with state-controlled enterprise groups,the negative impact of the internal capital market efficiency of private enterprise groups on the financial crisis is more obvious.Further considering central state-owned enterprise groups and local state-owned enterprise groups,we find that local governments control the internal capital market efficiency of enterprise groups to have a greater impact on the financial crisis than the central government-controlled enterprise groups.(5)The impact of internal capital market efficiency on the financial crisis exists only in real enterprise groups,and there is no such problem for non-enterprise groups.According to the above conclusions,this paper proposes countermeasures to reduce the probability of financial crisis of listed companies by improving the efficiency of internal capital market:(1)rational diversification,controlling the scale of corporate assets;(2)improving corporate governance structure;(3)improving listing Company information disclosure system.