Internal Capital Markets And Corporate Performance Correlation Studies

Internal capital market is a kind of important resource configuration mechanism as an alternative to the external capital market. The listed company of our country is mostly in the group under the control of listed companies and their associated companies, there are frequent internal capital market. Theoretically speaking, the existence of internal capital market is made up of external capital market limitations, can reduce the transaction cost, effective supervision, optimize capital configuration, ease external financing constraints and other advantages. But in actual operation, internal capital market is the failure, internal principal-agent problems, cross-sectional subsidies and insider control problem, damage to the internal capital market function.At the conclusion of my previous research results foundation, around the internal capital market in China is to reduce the enterprise performance to this problem, by means of theoretical analysis and empirical test, attempted to validate the internal capital market operation, and to get some inspiration and suggestions of management.This paper firstly reviews the internal capital market theories, mainly divided into several aspects, including:the existence of internal capital market, internal and external capital markets, the internal capital market boundary, internal capital market efficiency. On the internal capital market theory based on the analysis, elaborated the internal capital market on enterprise performance of positive and negative effect, put forward three hypotheses, namely internal capital market at the present stage is the low efficiency. On empirical study, this paper selects in Shanghai and Shenzhen A shares in the northwest province of listed companies in the internal capital market transactions data as samples in2007-2011, using three representative of explanatory variables, establishead regression model, verify the research hypothesis above.Through SPSS software, we get the research hypothesis consistent results, the group enterprise internal capital market overall is to reduce the enterprise value. Finally, according to the above conclusion, the paper get some enlightenment, put forward some suggestions for improvement, and points out the limitations and future research directions.