Research On The Allocation Efficiency Of Internal Capital Market From A Pluralistic Perspective

As an emerging market,China's capital market is in the beginning of the capital market.The external economic market is imperfect.Businesses are stunted.In order to remove the external market financing constraints.Businesses are starting to form conglomerates,trying to improve capital allocation efficiency through internal capital market,giving full play to the group advantage through the internal capital market allocation.Nowadays,Diversification of enterprises and internal capital markets are closely interdependent.Some scholars say,In terms of reducing operational risk and alleviating external financing constraints.The internal capital market can play an active role in the development of diversified enterprises.But other scholars say,In terms of facilitating the rent-seeking behavior of managers and increasing agency costs.The internal capital market has a negative impact on the development of diversified enterprises.So,what about the relationship between the degree of diversification and the efficiency of the internal capital market? Because the diversification of Chinese enterprises has become a trend.Many people are focusing on the relationship between the efficiency and diversification of the internal capital market of the enterprise group.This paper starts with the theory part,integrates the theoretical results at home and abroad.Taking Founder group as an example,and Founder securities,Founder hold,and pku resources under the same control body as samples.Based on the financial data for five consecutive years,the paper studies the relationship between diversity degree and internal capital allocation efficiency.In order to reveal the correlation between diversity degree and internal capital market allocation efficiency.Finally,the following conclusions are drawn:The degree of diversification is positively correlated with the allocation efficiency of internal capital market in Founder securities and pku resources.The degree of diversification has nothing to do with the internal capital market allocation efficiency in Founder hold.Based on the analysis of this conclusion,this paper suggests that diversified decisions should be made rationally based on various factors such as industry,timing selection and development strategy.