Studies on the efficiency of internal capital markets in China
The appearance of ICM was based on the failure or inefficiency of ECM. In China, because of governments limits on market allocation, low liquidity of the capital market and severe information asymmetry, enterprises especially for listed companies have a strong motivation of building ICM of their own.We set listed companies as research object to verify the effect of ICMs existence. Meanwhile, by introducing equity characteristics, we search for whether the efficiency of ICM with different equity is different. By reviewing and summarizing previous research, we propose a definition of ICM from the view of related party transaction. We define the ICM as a mechanism of resource reallocation which has influence on enterprise value and its main form is related transactions with capital exchanges properties. This paper also make a large sample inspection and acquire some conclusion. First, ICM effect widespread exists in Chinas listed company and has a negative impact on enterprise value; Second, companies with di fferent equities have different ICM efficiency.
Internal capital market effect Internal capital market efficiency Existence Double principal-agent theory Equity features
Wenxing Li Zheng Yao Chao Han
School of Economics and Management, Beijing Jiao tong University, Beijing, China
国际会议
2011 International Conference on Economic and Information Management(2011年经济与信息管理国际会议 ICEIM 2011)
北京
英文
165-172
2011-09-03（万方平台首次上网日期，不代表论文的发表时间）