Research On The Efficiency Of Internal Capital Market Of Wanxiang Qianchao

Nowadays the economic grows faster and faster,whether an enterprise can seize investment opportunities in time determines whether it can develop and grow rapidly.However,due to the underdeveloped external capital market in China,enterprises may not be able to obtain external financing in time when they have good investment opportunities,thus losing development opportunities.To solve this problem,enterprises began to form enterprise groups through acquisition and reorganization.Enterprise groups have incomparable advantages over single enterprises.They can transform the way of obtaining funds from external financing to internal financing and investment,which not only solves the problem of financing difficulties and untimeliness,but also reduces the financing cost.Therefore,this mode of internal capital market of enterprise groups is emulated by many enterprises.This paper based on the internal capital market theory,transaction cost theory,principal-agent theory,synergy theory,analyzes the background of internal capital market,and summarizes the scholars for internal capital market point of view.Through the introduction of internal capital market operation pattern and configuration efficiency measurement model,the analysis framework is established.By studying the financial data and other data of Wanxiang Qianchao from 2010 to 2017,this paper analyzes the allocation efficiency of Wanxiang Qianchao's internal capital market,then draws research conclusions and puts forward relevant suggestions.The results show that:(1)Wanxiang Qianchao fully participates in the internal capital market operation of the group.Wanxiang Qianchao and its member companies make full use of their respective advantages to complement each other and improve the overall asset utilization efficiency of the group.(2)The allocation of the internal capital market is not always effective.From 2010 to 201 7,the internal capital market allocation was effective in 2011,2012,2014 and 2015,while the other four years were ineffective.(3)The internal capital market operation effectively alleviates the financing constraint problem of Wanxiang money tide.Wanxiang cash flow obtained capital inflow through internal capital occupation and internal guarantee,and the reduction of cash holdings of enterprises indicates that the operation of internal capital market effectively alleviates the problem of financing difficulties.