Research On The Parent-subsidiary Control In State-owned Enterprise Groups

When a social economy develops into a higher stage, under the combined effects of the market competition and its internal evolution, a company may be organized in a senior form, which is called the enterprise group, characterized by the combination of parent and subsidiary companies. The development speed of national economy is directly affected by the development of state-owned enterprise groups, which depends largely on the effective control of the subsidiary companies by their parent.After nearly30years of development, the enterprise groups in China, especially the state-owned enterprise groups, have begun to take shape in the assets and the number, etc., and played an important role in the socio-economic construction. However, the enterprise groups in China, especially the state-owned enterprise groups, still face certain problems in the corporate governance and the parent-subsidiary control. The study of parent-subsidiary control in the state-owned enterprise groups has a certain practical and theoretical significance.The body of the dissertation is composed by eight chapters divided into three parts. The first part consists of Chapters Ⅰ and Ⅱ, which points out the significance of the study, clarifies the research purpose, methods and the structure of the body after the review and summary of domestic and foreign literature, and elaborates the related concepts, theories and means of the parent-subsidiary control in the state-owned enterprise group. The first chapter points out the meaning and the framework of the study after systematically reviewing the domestic and foreign study of parent-subsidiary control in the enterprise group. The second chapter defines the state-owned enterprise group, the parent and subsidiary companies and their relationship, and discusses the related theories, including the property rights theory, the principal-agent theory, the organizational coordination theory and the group governance theory. Finally, the means and ways of parent-subsidiary control in state-owned enterprise groups are summarized in this chapter.The second part is the core of this dissertation, which includes ChapterⅢ, Chapter IV, Chapter V, Chapter VI and Chapter Ⅶ. Mainly based on the first part, this part builds a China’s state-owned enterprises Group control mode after the international comparative study. Furthermore, a related evaluation system and maintenance system are established and verified. Chapter Ⅲ analyzes of the corporate governance and the control model of state-owned enterprise groups in the United States, Germany and Singapore, and takes Temasek Holdings as a study case. Chapter IV explicit the principles of the parent-subsidiary control in China’s state-owned enterprise groups based on the international comparative analysis. Through parsing the elements to build an effective control model, the author classifies the control model into A, V, W and H type, and discusses their application in China. The Chapter V builds a performance evaluation system on the basis of the definition of the performance of parent-subsidiary control in China’s state-owned enterprise group. The Chapter VI summarizes the maintenance system of the parent-subsidiary control in China’s state-owned enterprise group, including the corporate strategy, funds and the corporate culture etc.. Chapter Ⅶ takes the Wuhan Yangtze Communications Industry Group Co., Ltd. as example to verify the parent-subsidiary control in China’s state-owned enterprise group.The third part is the Chapter Ⅷ. This part summarizes the main conclusions and innovation of this article, and further study direction.