The Research On Alienation Of Investment And Financing Behavior In Internal Capital Market

With the rise of corporate globalization and diversification strategy of enterprises worldwide mergers and acquisitions, restructuring activities are common, which led to the birth of many large enterprise groups. Enterprise groups within the member companies can exchange resources, financial intermediation, this phenomenon has aroused the concern of many scholars at home and abroad. Alchian and Williamson first proposed the concept of the Enterprise Group’s internal capital market, then more and more research on this topic. According to studies, in developed countries, the market economy is relatively mature, enterprises can be more easily obtained from the external capital market investment, operating funds needed to build enterprise groups internal capital markets in order to achieve the optimal allocation of resources, reduce the investment costs of asymmetric information, improve the profitability of the enterprise group as a whole; late start due to the market economy and by the many policy and institutional constraints in developing countries, many enterprises, especially private enterprises, it is difficult from the external capital markets to obtain sufficient funds for the production and operation and invest in expanding the difficult problem of financing of private enterprises has become a common phenomenon.In order to ease the financing constraints, more and more private companies have chosen to way through mergers and acquisitions of listed companies to build internal capital markets, listed companies as the window of the external financing of the enterprise group, the alienation of its investment and financing behavior.Based on the above point of view, this paper by using case analysis,using the method of Baotou Tomorrow Technology Co., Ltd.(hereinafter referred to as tomorrow Technology) as the study sample, and analysis of tomorrow the enterprise group’s internal capital market to the influence of the financing behavior and the result of economic consequences. And by verifying the universality of other listed companies in the future Department of alienation of the investment and financing behavior, will study conclusion is to promote the enterprise group internal capital market.This paper is divided into five chapters. In the first chapter, described the background and significance of this study, the structure and main content of the thesis, research methodology and innovations. In the second chapter, reviewed the literature on the effectiveness of investment and financing behavior in the internal capital market and internal capital markets at home and abroad for this research direction. The third chapter describes the basic theory of the internal capital market investment and financing behavior analysis, and introduces an overview of the internal capital market, the evaluation of the function of the internal capital market positioning their alienation, the influencing factors on the internal capital market investment and financing behavior of alienation and economic consequences theoretical studies. On the basis of theoretical analysis, the fourth chapter of this paper takes the future technology as an example, analyzed the focus of the mode of operation, the serious economic consequences of such acts of internal capital markets of tomorrow’s technology controlling shareholder. And then by other listed companies on tomorrow Department investment and financing behavior research, verifying the universality of the enterprise Group’s internal capital market, investment and financing behavior of alienation. Finally, Chapter5comes to the conclusion of this study and put forward appropriate policy recommendations.The main contribution and innovation of this paper is:(1) In the perspective, this paper analyses the internal capital market of China’s enterprise groups of the investment and financing behavior, and recommend solutions for its alienation.(2) The article is not purely theoretical, but pay attention to the solution of practical problems, putting the focus on how to better to play the function of the internal capital market above, explained the plight of the internal capital market of enterprise groups in China.(3) Select the typical domestic case to analyze the combination of theory and practice. Provided a practical fragment for the future path of development of the internal capital market of enterprise groups in China.