Empirical Study for the Efficiency of Listed Companies in the Internal Capital Market

This paper introduces the following five concepts about equity: the holding shares by the group, the holding shares by the state, institutional investors, the holding shares by the executives and the concentration of ownership. By grouped comparison studying about the internal capital market´s direction, manner and purpose, the writer tries to give a general analysis of the efficiency of listed companies in the internal capital market. Moreover, according to statistic and econometric regression analysis, a multilevel econometric model is illustrated to verify the efficiency of listed companies in the internal capital market and the reason behind the result. In the conclusion, the study in this paper shows that the efficiency of the listed companies market is somewhat low in the internal capital market.