A Research On The Efficiency Of Internal Capital Market Of China-HH(?)

As a substation of external market,internal capital market plays an important role in enterprise group.Research about internal capital market is late in domestic,which is initially based on the foreign research.But to investigate the ownership structure,external capital market environment and so on,compared with foreign enterprises in China have more differences.Therefore,it is of great significance to conduct researches on the theory of internal capital market according to characteristics of domestic economic development.Compared to other enterprises,the water industry belongs to capital-intensive industries and it proposes high demand of resource allocation efficiency in internal capital market.This paper selects a typical enterprise in the water industry---China HHO as a case to analyze,which acts an important part in water infrastructure construction,enterprise operation in the water industry and so on.Apparently,China HHO is a good model to explore on internal capital market.This paper firstly combs both domestic and international theory researches on internal capital market,and then gives a brief introduction of case enterprise.Next,it analyses main operating model of internal capital market and explains the reason of using a two-echelon model.In terms of data analysis,this paper calculates efficiency of internal capital market under national and provincial limits and compares the results from the perspective of subsidiary company and business division,using the data from 2015 to 2017.After quantitative and qualitative analysis of case enterprise,this paper reaches the following conclusions:firstly,it is reasonable and coefficient for China HHO to divide internal capital market into national and provincial sub-markets and make the allocate efficiency of provincial internal capital market higher than the national one;secondly,besides general impact factors on the efficiency of capital market,such as diversification degree,ownership structure,size of internal capital market and so on,the allocate efficiency of internal capital market can be impacted severely by the industry trend,the foundation and scale of a company,the direction and accuracy of strategic decision.The innovative points of this article includes:firstly,a two-echelon model of internal capital market used by the case enterprise is conducted from the view of the water industry,external capital market,internal assessment system and management model of group;secondly,this paper summarizes some experience of China HHO as a typical and individual enterprise in the water industry,which can not only provide reference for China HHO in enterprise operation,but also can offer some feasible suggestions for other enterprises in the water industry.