Study On The Infulence Of Diversification Stategy Types Of Fosun Gruop On The Efficiency Of Ineternal Capital Market

At present,China's capital market is in a period of rapid growth,cause the external capital market development is not mature enough,the internal capital market came into being.Internal capital market exists widely in diversified enterprises,but there is no definite answer to the relationship between the efficiency of internal capital market and the development mode of diversification.Most scholars believe that the internal capital market of diversified enterprises can promote their enterprise value,such as financial synergies and saving external financing costs.However,some scholars believe that the internal capital market of diversified enterprises will reduce their enterprise value,such as cross-subsidy and rent-seeking behavior.So what is the relationship between diversification strategy and internal capital market efficiency?This paper first summarizes the concepts of diversification,internal capital market and its efficiency,and based on the transaction cost,principal-agent and orderly financing theory.After taking Fosun internal capital market as a case,this paper introduces the Fosun group in different periods of diversification strategy,and analyzes the Fosun internal capital market.Then using the financial analysis and sensitivity analysis of cash flow to find out its internal capital market efficiency changes,and analyzing the reasons.Through the combination of theory and case analysis,it comes to the following conclusions: under different diversification types,Fosun group deepens diversification strategy,and internal capital market efficiency is not improved.With the diversification of leading businesses,Fosun mainly relies on increasing investment in leading businesses.Under the diversification of related business types,the member enterprises of the group are often connected in terms of technology and capital,so it is easier to achieve efficient resource allocation.However,when the group enters the non-relevant diversification stage,it becomes more difficult to allocate internal capital market due to the aggravation of agency problem and the asymmetry of internal information.Based on the above conclusions,this paper believes that the diversification of China's enterprise groups should be moderate.The corresponding external supervision,strengthen management incentives and improve the relevant mechanisms can increase the efficiency of the internal capital market.