Internal capital market
1. the internal capital market theory
Internal capital market is the history of the development of modern enterprises in the United States, due to imperfections in external capital markets, companies need to trade integration and internalization, and thus the form of business organization to innovate, to enable enterprises to more effectively conduct internal capital allocation and internal resource management The concept emerged from time to time. Williamson (1975) departure from the scope of capital market, the various departments within the enterprise internal funds of enterprises to compete in the market known as the internal capital market.
2. the advantages of internal capital markets
(1) information superiority
(2) Financing Advantages
(3) The advantage of distribution
(4) The advantage of insider trading
(5) The advantages of corporate governance