Analysis On Enterprise Internal Capital Market And It's Governance

Internal Capital Markets (ICM) is the enterprise internal capital allocation mechanism. Theoretically speaking, internal capital market research originated from new system economics school of thought transaction cost theory. This theory believed, the reason that ICM can substitute for the External Capital Market (ECM), is ICM has the information and the drive, as well as the advantage of allocate internal resources effectively. According to new system economics theory, single branch enterprise lacks adjustment from ICM, therefore they must carry on financing by ECM. As a result of asymmetric information and other reasons existed, the enterprises carry on financing by ECM have to undertake the high transaction cost, and faces the great investment risk. But the big enterprises carry on financing through ICM, both can save the information search cost, and has dodge the investment risk to some extent.Internal capital market theory from proposed to present, have been paid more and more attention by the theorists and the practical realm. The scholars centered on internal capital market to launch the thorough research, which revolves the relations between internal capital market existence, efficiency and that of external capital market, whereas involves truly to the internal capital market effective application and governs not to see actually. Is different with the educational world argument, the practical realm is carrying on the practice continuously, has successfully, but more is actually because of governs, surveillance questions and so on belongs to the defeat. These defeat practice has suddenly appeared internal capital market fundamental research directivity as well as the urgency. Is precisely based on this kind of thought, this thesis launches the discussion on the internal capital market theory and the governance question.The logical organization and the major points of this thesis are as follows:The first chapter is introductory remarks. This part of main elaboration article selected topic background, the goal, the significance, the mentality, the frame as well as the research technique and so on and analyzes the research the theory feasibility and the realistic need.The Second chapter is internal capital market elementary theory analysis. This part start with the introduced internal capital market concept, analyzes the characteristic of internal capital market, with it correlation organizational structure, evaluates several kinds already internal capital market organization form which has, finally analyzes the internal capital market function puzzlement, and points out internal capital market the double-edged sword effect, must introduce the governance mechanism to overcome. This chapter is for the purpose of analyzing internal capital market comprehensively and building the foundation for the continuing later analysis.The third chapter is the enterprise internal capital market and the governance analysis and the introduction benefit counterparts governing together mechanism. This part is the key point of the thesis elaboration, from analyzes internal governance question obtaining which internal capital market brings, and then analyzes multi-layer proxy and benefit plundering and others that of the typical company governs question. Proposed is unable when the shareholder supreme principle solves internal governance problem, must trade a mentality, introduce the benefit counterparts mechanism, and analyzed the foundation that benefit counterparts to participate in the government as well as the way that realization governed together.The fourth chapter is case analysis. This part take 999 group's internal capital market puzzlement as a case, analyzes this group internal capital market with emphasis the activities and the governance questions, analyzes puzzlement which its internal capital market faces. With unifying the analysis conclusion of the thesis proposed to discuss 999 group various benefits counterparts to realize the strategy which internal capital market governs together.The thesis place of innovation mainly has: (1) in the analysis angle, has with emphasis analyzed internal capital market government question, proposed and elaborated internal governance benefit counterparts pattern. (2) This thesis is not the pure theory stack, but pays great attention to the solution actual problem, how places the objective point uses the good internal capital market aspect, explained internal capital market puzzlement. (3) selected the domestic case to carry on the analysis, the theory and actual unifies, had the practical significance to our country enterprise group internal capital market development.