A Study On The Internal Capital Market And The Inefficient Investment Behavior Of Enterprise

This paper makes use of the modern firm theory, business organization theory, information economics and economics of property rights theory and uses deductive reasoning and empirical research as research methods. The paper uses the China's private companies listed as objectives to research their investment behaviors and treatment mechanism.First, this paper relatively strict describes the relevant research purposes from the beginning and defines the concepts of investment and internal capital market. Second, this paper sorts out a detailed literature of internal capital market to improve investment behaviors from the two aspects of valid and invalid, and also sorts out a detailed literature of internal corporate governance mechanisms and external governance environment on investment behavior of listed companies.Then, this paper carries out a detailed analysis of the China's private listed companies'environment from three aspects of the legal system the market system the company system, and this paper puts forward the corresponding theoretical assumptions on theoretical basis of the analysis. Then, the paper uses the China's private listed companies group (In this paper, we called the two listed companies belongs to the same one or two of actual control over listed companies as "the Group") as samples. This paper uses the empirical methods of analysis to test of theoretical assumptions and cites the finance and business specific data of China's private listed companies group to reveal the existence of non-efficient investment behavior and comparison of listed companies, the private listed companies group investment efficiency is lower, and the internal capital market is not expected to play a role in optimizing capital allocation. Combined with the external governance environment of data China's private listed companies group ,this paper tests the governance of the inefficiency of investment behavior from the internal governance mechanisms and external governance environment for private listed companies group and reveals the governance role for inefficiency of investment behavior from the three aspects of the board of directors features ,market-oriented process and the law level of the china's private listed companies group, and relatively comprehensive analyses the governance mechanism of he inefficiency of investment behavior for the China's private listed companies.Finally, this paper points out two innovative points: first, this paper uses the group of private listed companies as an alternative to the internal object, and obtaines the conclusion of the existence of the inefficiency of investment behavior in the china's private listed companies group, and compares with comparative study sample, the efficiency investment behavior is lower from another view enriches the efficiency of listed companies and inefficiency of investment behavior research. Second, the paper introduces external control environmental factors, integrated the internal corporate governance mechanisms and external governance environment within the framework of the study to explore the inefficiency of investment behavior in the china's private listed companies group ,and obtains the conclusions that the external governance environment will affect the efficiency investment behavior of the china's private listed companies group :the market-oriented process is faster, the level of the inefficiency of investment behavior is lower; the degree of laws perfection is higher , the level of the inefficiency of investment behavior is lower. Thus the paper attempts to obtain the factors of impact on the level of the inefficiency of investment behavior .