Research On The Efficiency Of The Internal Capital Market Of Great Wall Group

With the rapid development of China's economy,many large-scale enterprise groups have gradually developed into enterprise groups by means of M & A and new subsidiary companies.In order to alleviate the external financing constraints,group enterprises can integrate and redistribute the internal funds,thus forming an internal capital market.To some extent,the efficiency of internal capital market allocation reflects whether the group's overall financial resources have been effectively integrated.Clan enterprises have many listed company platforms,and their resource advantages promote the growth of clan as a whole.However,in the development of private enterprises,there are many cases that the operation of clan model finally disintegrates.The reason is that the ineffectiveness of resource allocation in the internal capital market of the clan is an important factor leading to the failure of the clan.Many enterprises blindly expand without paying attention to the actual efficiency.Compared with the developed countries,the internal capital market efficiency of most of the clan enterprises in China is still very low.Therefore,it is of great practical significance to study the influencing factors of the efficiency of internal capital market and how to improve the efficiency of the allocation of internal capital market in China under the current institutional background.This article takes China's family-owned enterprise Great Wall Group and the three listed subsidiaries included in the merger scope as research objects,and conducts a case study on the Great Wall Group's internal capital operation and allocation efficiency.Based on the analysis of its structure and operation mode,based on the financial statements of Great Wall Group and its subsidiaries from 2015 to 2018,the cash flow sensitivity method based on return on assets and the adjusted profit sensitivity coefficient method The efficiency of the capital market is measured.The calculation results show that the Great Wall Group's internal capital market is inefficient and even ineffective.This article combined with the specific operation of the Great Wall Group,in-depth analysis of the reasons for the low efficiency of the Great Wall Group's internal capital market allocation,mainly manifested in four aspects: serious internal governance problems,the lack of a standardized operating platform for the internal capital market,operating strategies and external capital markets.Finally,based on the reasons of low efficiency,this paper makessuggestions on improving the efficiency of the internal capital market from four perspectives: improving the internal governance environment,establishing an internal financial platform,coordinating business strategies and capital allocation efficiency,and strengthening institutional construction.