IS INTERNAL CAPITAL MARKET OF CHINA LISTED COMPANIES EFFICIENT? - Empirical Evidences from Listed Companies which Have Multiple Divisions in H-stock

Fengjuan Wang, Zhihua Xie

2011

Abstract

In theory, when external capital market is not efficiency, groups can allocate resource efficiently through internal capital market. In this paper, we studied of listed companies which have multiple divisions in H-stock, used Cash Flow-Sensitivity Based on ROA to validate internal capital market efficiency of large samples. Results display that, on the whole, internal capital market of listed companies is efficiency, and the greater part of listed companies can continually allocate resource efficiently through internal capital market, part of listed companies have excellent capacity to “pick winner”. This paper is the first literature which employs listed companies as large samples to evaluate internal capital market efficiency directly, which would make research results more reliable and more representative. It would provide evidences for developing groups in our country and lay the foundation of further research in theory and method.

Paper Citation

in Harvard Style

Wang F. and Xie Z. (2011). IS INTERNAL CAPITAL MARKET OF CHINA LISTED COMPANIES EFFICIENT? - Empirical Evidences from Listed Companies which Have Multiple Divisions in H-stock . In Proceedings of the 13th International Conference on Enterprise Information Systems - Volume 4: PMSS, (ICEIS 2011) ISBN 978-989-8425-56-0, pages 600-605. DOI: 10.5220/0003597206000605

in Bibtex Style

@conference{pmss11,
author={Fengjuan Wang and Zhihua Xie},
title={IS INTERNAL CAPITAL MARKET OF CHINA LISTED COMPANIES EFFICIENT? - Empirical Evidences from Listed Companies which Have Multiple Divisions in H-stock },
booktitle={Proceedings of the 13th International Conference on Enterprise Information Systems - Volume 4: PMSS, (ICEIS 2011)},
year={2011},
pages={600-605},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0003597206000605},
isbn={978-989-8425-56-0},
}

in EndNote Style

TY - CONF
JO - Proceedings of the 13th International Conference on Enterprise Information Systems - Volume 4: PMSS, (ICEIS 2011)
TI - IS INTERNAL CAPITAL MARKET OF CHINA LISTED COMPANIES EFFICIENT? - Empirical Evidences from Listed Companies which Have Multiple Divisions in H-stock
SN - 978-989-8425-56-0
AU - Wang F.
AU - Xie Z.
PY - 2011
SP - 600
EP - 605
DO - 10.5220/0003597206000605