Research On The Allocation Efficiency Of Internal Capital Market Of Minmetals Group

With the development of Chinese economy,the demand of capital of enterprises is constantly increasing.Through commercial banks as a financing platform,enterprises have been unable to get fully capital to meet the business operation development by cash borrowing,trade financing and other financing methods.Some companies find third-party financing platforms' help in order to obtain funds no matter how high the financing costs are.In addition,in November 2015,China begun supply-side structural reform,which set higher barriers to the financing of enterprises in commodity industrial chain.In order to react the impact of many factors,some state-owned enterprises and private enterprises have begun system reforms,attempted cross-industry and even cross-regional mergers and reorganizations,and implemented the strategic objectives of diversified management.Through the establishment of diversified enterprise groups,the original single industrial chain was transformed into a parallel mode of multiple industrial chains in different industries,then the internal capital market of the company was constructed.This measure is defined as the allocation efficiency of internal capital market.Therefore,issues on the allocation efficiency of internal capital market have always been a key area and direction of academic research.In China,the research on the related issues of the internal capital market allocation efficiency is improving the operating efficiency for our enterprise.Based on the existing theoretical research of internal capital market,this paper selects 8 listed companies under Minmetals as the case study object,starting from the organizational structure of the company.Firstly,introduces the construction and operation of the internal capital market of Minmetals.Secondly,combine the operation of the companies,this paper use of efficiency measurement tools to measure the allocation efficiency of Minmetals internal capital market,comprehensive evaluate by the operation information and the measurement results to analyze the factors to influent the allocation efficiency of internal capital market.Finally,this paper give the suggestions for improving the allocation efficiency of Minmetals internal capital market.This paper analyzes the influencing factors and suggestions for improvement have certain reference value for other large-scale group enterprises of the same size in China.