Study Of State-owned Enterprise Groups, Internal Capital Allocation Efficiency

After more than two decades development, state-owned enterprise groups have become the backbone of the economy in our country. This paper takes internal capital market of state-owned enterprise groups as research subject, then analyzes its formation, running procedures and methods, and the influential factors of capital collocation efficiency, and uses the way of empirical test to inspect capital collocation efficiency of the enterprises which under the control of central authorities and local government. The main conclusions are as follows.First, The existence of internal capital market in enterprise group allow capital to configuration . Capital allocation exists not only in the external capital market, also exist in enterprise group of internal capital market, two different forms of cooperation are always together to complete configuration of social capital. Internal capital markets attached to different organization structure, have diversified investment, cash flow characteristics of cross-complementary behavior; The organizational model has entrusted loans, settlement center, pool funds, banks and finance companies and so on. These patterns reflect the evolution of the internal capital market from the primary form to senior forms of conversion process.Second, Many factors influence the state-owned enterprise group's internal capital allocation efficiency. there are many factors influence of the state-owned enterprise groups of internal capital allocation, This article lists the main four items: Enterprise's organizational structure,Effect of corporate governance,External capital markets and Property rights and political characteristics of the enterprise. The organizational structure and internal capital market allocation is closely related, Most of China's state-owned enterprise group system is based on family-based enterprises, structural characteristics of both the M-type holding structure of the pyramid, When the external environment changes, enterprise organization structure will make the adaptive change or innovation, While its internal capital allocation will be adjusted accordingly; The existence of internal capital markets increased the difficulty of corporate governance, In the absence of effective corporate governance mechanism conditions, the function of internal capital market will occur alienation, such as low efficiency of investment,the assets of tunneling bottom subsidiary and Investment high-risk tendency; External capital market and internal capital markets exist alternative and complementary relationship; Property rights and political characteristics also bringeth the state-owned enterprise group's internal capital market allocation efficiency is one of the important factors.Once more, the internal capital collocation efficiency of state- owned enterprise groups is lower. This paper takes affiliated firms in the state- owned enterprise groups as examples, borrows the model of"cash flow--unit investment opportunities"which was raised by Shin and Stulz in 1998, and though descriptive statistical analysis, Correlation coefficient analysis and regression analysis I discover that the internal capital collocation efficiency of state- owned enterprise groups is lower, in the process of capital allocation, these firms not distribute funds by the mechanism of"select the winners", and the best investment opportunity not is not allot to the best affiliated firm. Among them, the internal capital collocation efficiency of enterprises which under the control of local government is lower than enterprises which under the control of central authorities, and also exist more inefficient investments. This result could provide a theoretical basis for regulating the market manipulation of internal capital, optimizing corporation governance structure and enhancing the ability of sustainable profitability.