An Empirical Study Of The Internal Capital Markeon The Inefifcient Investment Behavior Of Enterprises

Investment behavior is one of most basic financial activities of enterprise. Manyscholars study the investment behavior of enterprise from different angles, but theseresearch is mostly based on the external capital markets, ignoring the internal capitalmarket. With the continuous development of Business groups in our country, the studiesabout internal capital market are gradually becoming a hot issue. The tunneling andsupport effect of internal capital market is one of the important content of research.On the basis of Chinese particular situation, and from the point of “tunneling” and“support”, according to the traditional theory, such as the pecking order theory, the theoryof asymmetric information and principal-agent theory etc, the article study theimpact of internal capital market to inefficient investment of enterprises with the method ofcomparison analysis and induction analysis. Choosing the date of Chinese manufacturing Ashares of the listed company from2009to2011as the sample, the article tudy theimpact of internal capital market to Inefficient investment of enterprises with the empiricalmethod. The article gets the following main conclusion:(1) The tunneling effect of internal capital market and over-investment are negativecorrelation. The tunneling effect of internal capital market and under-investment arepositive correlation. It means that the tunneling effect of internal capital market inhibitobviously he occurrence of over-investment and aggravating under-inwestment benavior.(2) The support effect of internal capital market and over-investment are positivecorrelation. The support effect of internal capital market and under-investment are negativecorrelation. It means that the support effect of internal capital market can obviouslyaggravating the occurrence of over-investment and alleviate under-inwestment benavior.(3)Based on the different ownership rights, the relationships between internal capital marketand inefficient investment are different. In the state-owned business groups, the influencedegree of the impact of internal capital market to inefficient investment of enterprises islower than non-state-owned business groups. It shows that non-state-owned businessgroups likely tunneling and support listed companies.