Research On Sinochem’s Internal Capital Market Allocation Efficiency

Since the reform and open policy, our country economy rapid development, in order to adapt to the globalization competition, a large number of enterprise development strategy of diversifying in our country, through mergers and restructuring, gradually become a group enterprise, the enterprise scale expands unceasingly, for the financing demand is growing, but the traditional external capital market has not fully meet the capital needs of enterprises, group enterprises through the form their own internal capital market, capital of the internal financing to alleviate the financing constraints of external market. And in the process of capital allocation,internal capital markets its capital allocation efficiency of high and low to a certain extent, can determine the group’s overall financial resources integration advantage into full play, but because of the particularity of our country’s current economic system, "a dominant" phenomenon common in group, agency problem is serious, and many enterprises blindly for expansion, and did not pay attention to practical efficiency, the allocation efficiency of internal capital markets relative to developed countries is still very low, so this article research the efficiency of internal capital markets has important practical significance.Selected as the breakthrough point, based on the capital allocation efficiency in our country state-owned enterprise sinochem group and subordinate four listed company as an example for case study, the internal capital market in-depth analysis of the internal capital market present situation, development model and way; On the basis of sinochem group subordinate four listed companies from 2011 to 2014 the disclosure of financial statement data, using the improved cash flow sensitivity coefficient method from two aspects: internal capital flows and investment opportunities for internal capital market allocation efficiency calculation. According to the calculated results we found that, in addition to 2011 group did not assign internal capital investment opportunities in the most optimal division lead to ineffective internal capital markets, the remaining three years of the Chinese group in the internal capital allocation, adhere to the principle of "optimal" investment opportunities, capital allocated to investment opportunities within the group by the optimal division, resulting in the group’s overall internal capital market allocation is valid, but relative to Europe and the United States developed over, its efficiency is still very low. Finally, this article from the degree of equity concentration, diversified and Angle of internal capital market scale three sinochem, the influence factors ofinternal capital market allocation efficiency is low.Contribution of this article is from the internal capital market efficiency is calculated and the factors affecting the two aspects of in-depth study, can improve more on internal capital market research, and analysis of influence of sinochem group internal capital market allocation efficiency of specific factors, for sinochem and related industries, has the certain enlightenment and reference significance.