Abstract: Considering decisions on internal capital markets in group companies, subsidiary managers have their own benefits which would be different from the groups' value. In order to study what factors will affect the subsidiary manager's decision,taking Chinese listed companies as a typical representative of group subsidiary, an experiment plan was designed to collect data from 300 MBA students. In the plan, a basic scenario and three kinds of arrangements of internal capital markets were introduced to the participants, who were supposed to be subsidiary managers of a group company. They were required to choose whether agreement with the arrangements and give us reasons that affect their choices. 14 different reasons were given based on theory analysis and literature, and the participants should choose the score in a Likert scale. Then, the above reasons were divided into six factors to analyze the confirmative factor. According to the logistic regression results, stock market reaction is the most important influencing factor for subsidiary managers' decisions, and they also consider internal control and group interests make a definite effect.