Research On Value-Oriented Business Group Management&Control

This dissertation is of great practical and academic value to the study on the issue of business group management&control. Business group is a very important organizational form of modern economy, reflecting the competitive strength of a country in the world economic arena. Since the30years of the reform and opening-up, our country’s business groups have developed prosperously, and there have been79business groups in the ranking list of world fortune500, but at present, the whole ability of management and control is weak, and need to be improved. The study of group control is mainly focuses on the study of parent-subsidiary relationship, basically belongs to the category of capital control, lack of further exploration. This is unfavorable to our country business group to participate in international competition, and unfavorable to our country business group under the new market and technology environment to promote value-creating ability. Therefore, through the study, to discuss the approaches to promote the value-creating ability of our country’s business groups by group management and control is of very strong practical significance. From the academic point of view, the concept of group management and control comes from the management practice of our country’s business groups, and is still in the process of ceaseless improvement and development, and its connotation is provided with dynamic nature, as well as the value and necessary for further study, and its theoretical basis, research approach and contents need to be explored further.This dissertation takes the example for the business groups selected from the A-share companies listed in the securities exchange in both Shanghai and Shenzhen between2007and2011, under the background of the current situation of the development and management&control of our country’s business group, using a combination of specification and empirical research methods, on the base of reviews and summarization of the existing literatures, focuses on studying the following three aspects of group management and control:(1) what is the group management and control that suits for the practical demands of our country’s business groups at the present stage?(2)If value creation is the long-term objective of modern business management, what is the impact of group management and control on the value creation?(3) Look from the consequences of group management and control, what kind of group management and control frame is beneficial to the management practices of our country’s business groups?Through the research, this dissertation finds out that:(1) Business group is an enterprise network composed by the fundamental relations including the administrative hierarchy relation, property relations, and network relation and so on, as well as a value creation system collected by the Enterprise gravity and the unity and opposition of the enterprise ownership and management right. Therefore, group management and control should be the process to coordinate the primary interest relationship in the group, manage the risks and realize the value creation, and the unity of the capital control based on the ownership and the value management based on the management right. Group management and control is the internal control of Chinese characteristics, and is the core part of internal control.(2) there is obvious positive correlation between the internal control and the value of business group; hence, the main content of group management and control is to control the driving factors of business group value creation, the impact of which on the value creation derives from the good internal environment and internal supervision in the state-owned business groups, and comes true mainly through the internal supervision in the non-state-owned business groups. Therefore, at this stage, the group management and control in the Chinese groups should emphasize the value-oriented approach to promote the enterprise value, mainly by strengthening the development of the group internal control focusing on the internal environment and internal supervision to realize it.(3) The framework of the value-oriented group management and control consists of the management and controls of capital chain, risk network and value constellation. Capital control refers to the coordination, management and control of the business group administrative relation and property relations, which is mainly manifested by the longitudinal management and control; value constellation control refers to the system management and control of the value creation and the network relation for business collaboration; and risk network control refers to the all-round, whole and three-dimensional control of enterprise group.The main innovation and contribution of this dissertation is represented in the research contents and perspective. In the research content, this dissertation redefines the concept and content of group management and control, builds the value-oriented group management and control framework, to conclude that at the current stage, the impact of group management and control in Chinese enterprises on improving the enterprise value is mainly realized by strengthening the development of the group internal control focusing on internal environment and supervision. In the research perspective, the current researches on group management and control mostly focus on the management-control modes and means, but there are few researches directly involving in the consequences, and even less literatures about the research from the view of real evidence. This dissertation firstly goes into the research of group management and control in the aspects of specification and empirical systematically with the original point of value, theoretically analyzes the relationship of group management and control with value creation and verifies the impact of group management and control on value creation empirically, directly involving in the consequences of group management and control and expanding the researches, on the relationship of management and control with enterprise value from a single enterprise to business groups, from decentralized expansion to comprehensiveness, so as to enrich the theory of management and control and also expand the range of the research on group management and control for the academic circle, which makes up the shortage of the current researches.