Study On The Efficiency Of Internal Capital Market Based On Different Ownership Characteristics

The appearance of ICM was based on the failure or inefficiency of ECM. In China, because of government's limits on market allocation, low liquidity of the capital market and severe information asymmetry, enterprises especially for listed companies have a strong motivation of building ICM of their own. We set listed companies as research object to verify the effect of ICM's existence. Meanwhile, by introducing equity characteristics, we search for whether the efficiency of ICM with different equity is different.By reviewing and summarizing previous research, we propose a definition of ICM from the view of related party transaction. We define the ICM as a mechanism of resource reallocation which has influence on enterprise value and its main form is related transactions with capital exchanges properties. This paper also make a large sample inspection and acquire some conclusion. First, ICM effect widespread exists in China's listed company and has a negative impact on enterprise value; Second, companies with different equities have different ICM efficiency.