| Capital allocation has a prominent position in the resource allocation of contemporary enterprises.Generally speaking,it can be carried out through two internal and external capital markets.Markets such as credit,stocks,and bonds belong to external capital markets,from which companies obtain external sources of funding.The internal capital market is different,and it exists within the organization of the enterprise.Therefore,its capital allocation is essentially the decision-making management behavior within the enterprise.This paper aims to study the functional alienation of the internal capital market of family enterprises.In domestic family enterprises,the existence of internal capital markets is an indisputable fact.For enterprises,the initial purpose of the establishment of its internal capital market is to improve the efficiency of capital allocation and reduce the pressure of financing to maximize the level of corporate capital utilization.However,given that internal capital markets are hardly standardized like external capital markets,there are many drawbacks in the process of resource allocation.Such malpractice is manifested in the fact that the major shareholder of the enterprise uses its own position and the financing platform of the listed company to transfer the interests of the listed company and illegally occupy the assets of the listed company,thus causing damage to the interests of the small and medium shareholders.Such behaviors tend to be more subtle,and the information about the internal capital markets of listed companies does not need to be disclosed,which leads to the alienation of the internal capital market functions.Therefore,how to find out the problem of alienation of such functions in the internal capital market and to circumvent it has become an urgent problem to be solved.Based on the case study of Haihang Department,this paper finds that the phenomenon of functional alienation in the internal capital market of Haihang Enterprise Group is found through the analysis of cash flow sensitivity coefficient and Tobin Q value method.The actual controllers of the Hainan Airlines use the listed companies to raise funds in the external capital market,and most of the funds raised are transferred to other member companies in the department to meet the overall capital needs of the family enterprises,and their functional alienation is mainly manifested in Internal equity transactions,internal capital occupation and mutual guarantee within the system.Because of the alienation of the internal capital market,Hainan Airlines has brought a series of serious economic consequences.For example,relatedparty transactions have been investigated and punished by the CSRC,business performance has declined or lost,and market performance has been poor.Similar economic consequences of this kind will cause serious damage to the interests of small and medium-sized shareholders,while the major shareholders of the enterprise will profit from short selling and transfer of assets of listed companies.The reason for this situation is mainly at the following two levels:At the micro level,the pyramid-type equity structure of the family enterprise leads to the over-concentration of the rights of the major shareholders,lack of effective checks and balances and constraints;at the macro level,the internal capital market is not standardized.The laws and regulations are not perfect,and the information disclosure mechanism is lacking.The major shareholders have obvious information advantages compared with the small and medium shareholders.In this way,this paper proposes the following five suggestions:strengthen internal fund management and control,focus on protecting the interests of small and medium shareholders,constrain the behavior of controlling shareholders,achieve joint governance of internal capital markets through multi-participation,and promote the overall listing of family enterprises.. |
