Research On The Operation Efficiency And Risk Of Internal Capital Market In Enterprise Group

With the rapid development of economy,capital,as a scarce resource,has to be rationally allocated in the operation of enterprises to improve its efficiency.Therefore,how to allocate resources has always been a frequent problem at home and abroad.At the same time,with the further development of the socialist market economy,large enterprises in China begin to acquire other businesses or sub subsidiaries,forming many business groups.Because of the increasing scale of group enterprises,part of the capital flows from the external market to the internal gradually.This change also affects the development of China's economic and financial industry.With a large scale of enterprises or enterprise groups from the creation of prosperity to decline,the risk of internal capital market gradually revealed.Some enterprises effectively provide favorable resources to support the development of listed companies,while some companies use equity structure and perplexing group related transactions for personal gain,occupying the interests of minority shareholders,but also destroy the good market order.In view of this phenomenon,this paper analyzes the definition and internal capital market operation,efficiency,effect and possible risks.In the part of case analysis,from small shareholder perspective,this paper studies the methods of internal capital market operating and its influences from the example of Dunan Group and its listed company Jiangnan Chemical,and put forward the improvement suggestions.This paper found that Jiangnan Chemical actively participated in the internal capital market operation group through internal transaction and internal mutual guarantee etc.And the Dunan Group allocated funds according to the performance of listed companies in some years,so the internal capital market is effective only in 2011,2013 and 2015.In addition,the internal capital market brought not only more capital and resources but also many risk,such as excessive debt,benefit delivery through related transaction and so on.