An Empricial Study On The Effects Of Enterprise Groups’ Internal Capital Market On The Inefficiency Investment Of Listed Companies

With the continuous reformation of economy and development of enterprise groups in China, the study of internal capital market has become a hot spot. Among them, internal capital market’s influence on the investment behavior of listed companies has become an important issue.First of all, this paper reviewed the related theory of internal capital markets. Secondly, put forward the use of related party receivables and payables to measure the internal capital market, selected the internal capital market activity and the occupation effect of the internal capital market to research the relationship between enterprise internal capital market and listed companies investment behavior, clarified the empirical study of the basic train of thought, chose2010-2013Shanghai and Shenzhen A shares and obtained3312samples, through multiple regression analysis to research the effect of internal capital market on enterprise investment.On the basis of the analysis of enterprise groups’ internal capital market in China, this paper found internal capital market activity has a significant correlation with the capital investment of listed companies, the group internal capital market activity is higher, the more serious the phenomenon of the inefficient investment of listed companies.On this basis, this paper used "tunneling" and "propping" as the breakthrough point, to further differentiate the investment inefficiency into excessive investment group and inadequate investment group, and found1285excessive investment samples and2027inadequate investment samples, used internal capital market capital occupation effect index, researched block shareholders’"tunneling" and "propping" behavior’s impact on investment efficiency of listed companies. The study found that the block shareholders or controller of the company uses internal capital market "tunneling" effect to occupy a lot of fund. If the listed company has limited free cash flow, this situation will aggravate the financial distress of listed companies and makes a listed company may give up more positive return investment opportunities, worsen the investment inefficiency of listed companies. The block shareholders or controller of the company uses "propping" effect of internal capital market to increase the fund supporting to listed companies, effectively alleviate the financing constraint problem, and achieved the free allocation of funds. Listed companies which owned by enterprise group is more likely to get enough capital to "propping", and the enterprise group’s use of capital allocation to fund listed companies may lead to blind investment, aggravate degree of excessive investment. Can alleviate the degree of lack of investment of listed companies.