The Research On Impact Of Financial Discrimination On Internal Capital Market

With the emergence of innovative organizational structure and diversification,internal capital markets have become a hot academic.And the relevant researches are more focused on asset allocation efficiency,which are divided into two factions,there are the valid and invalid theory.In China,internal capital market research started relatively late,and current research focuses more on intermal capital allocation efficiency,ignoring the influence of the external financial environment.In fact,enterprises of different ownership received different treatment from theextemal financial environment.Therefore,this paper studies the influence of discriminatory financial environment on the allocate efficiency of internal capital market of enterprises of different ownership to put out a more comprehensive inquiry into the operating characteristics of the intermal capital market of particular country situations.This paper expands the scope of the intermal capital market,well explains internal capital market allocation behavior under our emerging capital market conditions.Empirical result shows that internal capital markets and external capital markets are not isolated,while internal capital allocation activities will be affected by external financial environment,and the impact of this operation on non-state enterprisesare greater.This paper first describes the research background,significance,content and method;secondly,describes the internal capital market-related concepts and measurement methods of allocation efficiency,and literature reviewed and summary on the study of factors that influence the internal capital market allocation efficiency;then introduces the two theories of internal capital market allocation efficiency:valid and invalid 's theory,and on this basis,it analyzes the impact of discriminatory financial environment on intermal capital market allocation,and puts forward relevant hypothesis;Next,according to previous theoretical analysis it establishes a multiple regression model and investment efficiency measurement model;Finally,according to the enterprise's major shareholder and ultimate controller of the nature,the Shanghai and Shenzhen A share listed companies are divided into State-owned groupand private groupto egress two sets of data.In order to eliminate the influence of other factors on the research results,this paper selects the firm size,debt ratio,the maturity of the enterprise,ownership concentration,separation of ownership of,business growth,enterprise scale,management expense ratio and other control variables were entered into the model in order to ensure the accuracy of the results.Besides,this paper descriptively analyses the statistics by STATA12.0 software related variables,and study the efficiency of investment by multivariate regression model by which verifies the proposed assumptions.Through empirical regression we reach the following conclusions:discriminatoryfinancial environment will increases internal capital allocation activity,but doesn'tprove the efficiency of the internal capital market allocation.And the negative impact of internal capital allocation is moreser:iousfor non-state enterprises.Therefore,a fair financial environment is important to improve the internal efficiency of the ICM allocation.