Research On The Efficiency Evaluation And Influencing Factors Of Huafa Group’s Internal Capital Market

Over the years,Chinese enterprises have grown up rapidly with the rapid development of China’s economy,and the application of market mechanism has become more mature.In order to survive and develop,enterprises are constantly carrying out a large number of mergers and acquisitions and restructuring,and carrying out a far-reaching layout,which eventually gives birth to a large number of enterprise groups.Therefore,with the development of large-scale enterprise groups in the market,a large number of internal capital markets are being established.According to the existing literature,we can find that whether for state-owned enterprises or private enterprises,the role of internal capital market in the development of enterprises is increasingly prominent,so the research on the efficiency of internal capital market and its influencing factors has become the focus.At present,there are disputes about the efficiency of internal capital market in academic circles,such as "validity theory" and "inefficiency theory",and there is no unified conclusion about the influencing factors of the efficiency of internal capital market.Therefore,this paper starts with the internal capital market of Chinese enterprise groups,combs the existing research results at home and abroad,and takes Huafa Group,the local leading enterprise in infrastructure and real estate business,as the case study object,analyses the construction process and operation mode of the internal capital market of the group under its specialization strategy,and calculates the efficiency of its internal capital market,and draws a conclusion that Huafa Group is a local leading enterprise in infrastructure and real estate business.Based on the conclusion that the internal capital market of Development Group operates well and efficiently,some opinions and suggestions on promoting the better development of the internal capital market of China’s enterprise groups are put forward.This paper consists of five chapters.The first chapter is the introduction of this paper.Firstly,the background and significance of the topic are introduced.Then,it introduces the literature review found in the process of writing.Finally,it introduces the research ideas,research methods and basic framework of this paper;the second chapter is the theoretical basis,introducing the concept of internal capital market,the operation mode of internal capital market and the measurement method of internal capital market efficiency,and elaborating the theoretical basis of supporting the relevant research of internal capital market.Basis,including synergy theory,principal-agent theory,transaction cost theory,information asymmetry theory and so on,these theories provide the basis for the overall study of this paper;Chapter III is the efficiency evaluation of the internal capital market of Huafa Group,introducing the reasons for case selection,the simple situation of Huafa Group and the operation mode of the internal capital market of Huafa Group,and finally analyzing the internal capital of Huafa Group.The fourth chapter introduces the main factors affecting the internal capital market of Huafa Group,including external capital market,diversification strategy,corporate governance and internal financial intermediation;chapter 5 is the conclusion and suggestion of this paper.Based on the analysis of Huafa Group in the previous chapter,this chapter puts forward the effective and rising trend of the internal capital market of Huafa Group,of course,with developed countries.Compared with the average capital allocation efficiency,there is still much room for improvement.In addition,there are still some problems in external capital market and strategy implementation,which leads to the relatively low efficiency of internal capital market of Huafa Group.Therefore,this paper finally puts forward some suggestions that Huafa Group should improve the external supervision system and improve the capital market environment.Compared with other research literature,the main innovation of this paper is to take the actual case as the research object,analyze the influencing factors and performance efficiency of the internal capital market of Huafa Group,through the combination of quantitative and qualitative analysis,apply mature theoretical knowledge,and calculate the efficiency of the internal capital market of Huafa Group,which actually exists in the enterprise group,by calculating the efficiency of the internal capital market of Huafa Group.The existing problems and shortcomings are pointed out,and suggestions for reference are put forward.At present,our country is in the stage of completing the mixed reform of central enterprises,and the reform matters are very important,affecting the whole body.The purpose of the reform is to deepen the market operation.Whether the results of the reform can be achieved as scheduled,these need to be tested by the market.The efficiency and influencing factors of the internal capital market of enterprise groups studied in this paper further broaden the thinking of the research on the reform results,and provide a significant guiding theory for the market-oriented development of large enterprise groups such as central enterprises and state-owned enterprises.