Research On The Efficiency Of Internal Capital Market After Seasoned Equity Offering

According to the statistics,In China,the ratio of listed companies under the business groups reaches 81%,more than 90%of listed companies involved in internal capital market operations.As the core member of the enterprise group,the listed company play a role of"Financing Platform".The Group establishes the fund pool through the companies with strong financing capabilities,and allocates the internal capital through the internal capital market to ease the financing constraint of other members of the Group.After the Seasoned Equity Offering,Whether the internal capital operation will be alienated as a tool for occupying the financing capital of listed companies?Whether the internal capital operation will effectively allocate funds and increase the value of the Group?The above-mentioned problems which are taken a research should help reveal the relationship between the internal capital operation and the financing behavior of the listed company,and it also has reference value of external investors and market regulator.On the basis of precious literature,the paper summarizes the relevant theoretical basis and adopts the combination of theoretical analysis and case study.The paper selects the Wanxiang Group as a typical case,analyzes the efficiency of Wanxiang Group internal capital market by using the Adjusted Profit-Sensitivity method and the enterprise value analysis method.It indicates:First,The performance of Wanxiang Qianchao didn't show a significant decline,and its enterprise value increased after slightly decreased;second,the internal capital market of Wanxiang Group is effective and shows ascendant trend,but still at a low Ievel.Third,the internal capital operation of Wanxiang Group enhanced the overall value of the Group and also increased the financial risk of Wanxiang Qianchao.Fourth,the group strategy,the position of member enterprises in the Group and the degree of the separating cash-flow rights from control rights led to its internal capital market efficiency.Finally,this paper summarizes the research conclusions,it can provide reference for Wanxiang Group and many private enterprise groups.