Study On The Efficiency Of Internal Capital Markets In Chinese State-Owned Enterprise Groups

State-owned enterprise groups are the backbone of the national economy and the main force ininternational competition. However, compared with large foreign multinational enterprise groups, China’sstate-owned enterprise groups are still behind in terms of comprehensive competitiveness and sustainabledevelopment. One of the key factors affecting the sustainable development and the comprehensivecompetitiveness of state-owned enterprise groups is the efficiency of internal capital market. Therefore,exploring factors affecting the efficiency of state-owned enterprise group’s internal capital market andmeasuring whether internal capital market in state-owned business group are operating effectively, has thevital significance for improving the efficiency of internal capital market in state-owned business groups andthe comprehensive competitiveness of state-owned enterprise group.On the basis of related literature on internal capital market, referring to principal-agent theory, transactioncost theory and the theory of resource allocation in internal capital market, the internal capital market’sallocation efficiency of state-owned enterprise groups are analyzed in theory. On the basis of theoreticalanalysis, state-owned listed companies in2011are selected as samples. The efficiency of internal capitalmarket in state-owned business group has been analyzed, using the method of descriptive statistics, correlationanalysis and comparative analysis, from four perspectives. The results of theoretical analysis and empiricalresearch show that state-owned group’s headquarter is not allocating resource completely as the guidance ofinvestment opportunity of its member enterprises, and has misappropriated the funds of listed company byinternal capital markets, resulting in a loss of resource allocation efficiency at the headquarters’ level; after theallocation of resources to the members, members of the enterprise have not made reasonable decisionsaccording to the investment opportunity, leading to low level of resource allocation efficiency in members ofthe enterprise; internal capital market in state-owned business group, to a certain extent, is able to easefinancing constraints of member enterprises; internal capital market in state-owned business group has notaliened to the channel for actual controller robbing the interests of minority.