Research On Internal Capital Market Based On Diversification Strategy

With the continuous expansion and development of enterprises in the process of business development and the complex environment facing enterprises,more and more enterprises have embarked on diversified development due to scale expansion or risk dispersion.Since the essence of enterprise diversification is investment behavior,it is bound to require corresponding financing activities for supporting development,and investment and financing are combined to achieve strategic landing.Therefore,the establishment of internal capital markets by diversified group companies has become the only way.The Group's strategic deployment has a guiding role in the operation of the internal capital market,and the realization of the Group's strategic goals is inseparable from the assistance of the internal capital market.Based on the above situation,the core question of this article is: In an enterprise with diversification as its development strategy,how is the internal capital market established and how is its operating mechanism and efficiency?In terms of research ideas,based on the perspective of corporate diversification strategy,using a single case study method,taking Junyao Group as an example,the internal capital market under the diversification strategy is analyzed from the two dimensions of top-level design and specific operation process.It analyzes and judges the operating efficiency of the internal capital market,and summarizes the problems that Junyao Group has in these two aspects in the internal capital market,and finally puts forward reasonable suggestions for the effective operation of the internal capital market where the company's diversified business strategy is implemented.This study found that there is a stratification phenomenon in the internal capital market of the June Yao Group.The upper-layer internal capital market composed of listed parent companies and large shareholders and the lower-layer internal capital market composed of listed parent companies and subsidiaries differ in function and operation.The upper-level internal capital market focuses on building a group financing platform to achieve the optimal allocation of capital;the lower-level internal capital market focuses on improving the liquidity of daily operations of enterprises and investments in subsidiaries.However,due to the unclear corporate diversification strategy and the aggressiveness of internal decision-making,the Juneyao Group has overinvested,the enterprise as a whole is running into a situation of insufficient funds and liabilities,and the related operations of the internal capital market continue to serve fund raising.The function of recreating the value of internal resources has been neglected,and there has been a problem of a decrease in the operating efficiency of the internal capital market.The characteristic of this article is to analyze the operation mechanism of the internal capital market in the enterprise group in the enterprise diversification from a research perspective,focusing more on the deep-seated analysis of the problems that arise in the process of enterprise diversification,not just on the business performance;In terms of research methods,the difference is that most of the similar problems use large sample empirical methods.In this paper,case studies are used to fully analyze typical cases;in terms of research objects,private enterprises are the main body.