| Internal capital markets (ICM) is the place in which business groups'resource is incorporated and re-allocated, and its essence is an inner market behavior. ICM has the function of reducing the information problems and inspiration conflicts between the enterprise and external capital markets (ECM), reducing the financing cost and improving the financial resources'allocate efficiency. The operating efficiency of ICM decides whether the enterprise groups'advantage can be exerted adequately. Present literatures are main concerned on the resources allocate characteristic and efficiency of ICM in diversified enterprise groups, focused on finding the influence of different institutional arrangements to ICM's value creation. This paper researchs the problems of ICM's value creation on the theory of new institutional economics and basic resources theory, aimed at finding the impact of institutional arrangements and resource heterogeneity to ICM's value creation.Firstly, we analyze from a theoretical perspective, on the basis of the introduction of relevant theories, we definite the value creation in internal capital market, referencing the influence of new institutional economics and basic resources theory to value creation. Then we discuss the influencing factors from the perspective of institution and resource;Thirdly, by choosing proper samples and indexes, we take an empirical testing on the influencing factors of ICM's value creation. The result of this research shows that the internal capital markets'value creation is significant positive to managerial ownership and salary, Interest cover, Operating Net Cash Flow and the proportion of the enterpriser who owns Master's degree or higher; And it significant negative to managerial Consistency in decision-making, enterpriser's average age and the size of the corporation; While there's no significant correlation between ICM's value creation and the proportion of independent directors,the size of Supervisory Committee,The duality of general manager and the chairman of the board, the largest shareholder's share proportion , the separation factor of cash flow right and control right, the quantitative index of relation resources and information resources.Finally, we summarize the main conclusions of this paper and bring forward the future research directions. |
