Research On Financial Control Of Chinese Enterprise Groups

We know that the financial control have great immediate significance in a company, especially to enterprise group. This paper have a thorough study on enterprise group, going deep into analyzing the financial control over subsidiary companies.The thesis is composed up of five chapters, starting from the exordium. In this chapter, we depict the research backgrounds of this paper, explain the research significance of this paper, expound the evolvement of financial control theory, discuss the meaning and sorts of enterprise group, redefine financial control, finally indicate research scope and structure of this paper.The second chapter expatiates the aim of financial control of enterprise group and the present situation of financial control in Chinese enterprise group and claim that the aim is to the most effectively collocate the holistic resources of the group to max the whole interests of the group and lead the actions of subsidiaries to the whole strategy of the group. The second also points out the financial control of Chinese enterprise groups doesn't exercise effectively. The groups have a great deal of financial control problems such as the distortion of financial info, and even lose control of financial actions.In the third chapter, according to the arrangement of financial rights between parent company and subsidiary companies, This paper divides financial control model into three types: centralization model , decentralization model and composite model. There are many factors affect the arrangement of financial rights, such as development stage of the group. Considering the specific conditions of our country, the paper puts forward that Chinese enterprise group should carry out the composite model that takes centralization of financial rights as dominant factor.We know that an efficient system of financial control is all-important for enterprise group to improve its financial control, so the fourth chiefly designs a businesslike system of financial control .The fifth is the end, summing up the primary conclusions of this paper.