Research On The Efficiency Improvement Of X Group's Internal Capital Market

With the rapid development of China's economy,many large-scale enterprises have developed diversification strategies to cope with the increasingly fierce global competition,and they have gradually grown into large enterprise groups through mergers and reorganizations.While the scale of the company is expanding,it is difficult to meet the increasing capital demand of the company by relying only on the external capital market.To ease the external financing constraints,the group companies can integrate and redistribute internal financial resources,thus forming an internal group within the groupP capital market.The level of efficiency of internal capital market allocation reflects,to a certain extent,whether the company has achieved effective integration of the group's overall financial resources.However,due to the special nature of China's economic system at this stage,the state-owned enterprises have serious agency problems,and many companies blindly expand without paying attention to actual efficiency.Compared with developed countries,China's group companies' internal capital market allocation efficiency is still very low.Therefore,the case study of the efficiency of internal capital market allocation in this paper has important practical significance.This paper takes the efficiency of capital allocation as the starting point,selects China's state-owned enterprise X Group and its seven subsidiaries included in the scope of the merger as an example to conduct internal capital market case studies and in-depth analysis of its internal capital market construction process and operating methods;based on X Group and The financial statements of its subsidiaries from 2014 to 2016 use the improved cash flow sensitivity coefficient method to calculate the efficiency of the internal capital market allocation from the perspective of internal capital flow.Based on the calculated results,we found that the X Group's internal capital market was ineffective in 2016.Although the X Group's internal capital markets in 2014 and 2015 were effective,the efficiency was very low,and the efficiency of the X GrouP's internal capital market was three years Falling.Based on the specific operations of Group X,this paper analyzes in depth the reasons for the low efficiency of the capital allocation of X Group's internal capital market.The reasons are mainly reflected in three aspects:lack of a standardized operating platform for internal capital markets,information asymmetry in internal capital markets,and internal capital There is egalitarianism and excessive investment in the market.Finally,based on the reasons of the low efficiency of the internal capital market,this paper proposes to improve the internal capital market capital of the X Group from three perspectives:building an internal capital market operating platform,alleviating the asymmetry of internal capital market information,and adjusting the efficiency of internal capital allocation based on the Group's strategic control model.Configure the efficiency of the program.This article has some enlightenment and reference significance for X Group and even China's state-owned enterprises.