Study On The Mode Of Centralized Fund Management Of Enterprise Group

The enterprise group is a intermediary organization between the single enterprise and market. With the continuous deepening of China's market economic system reform, enterprise groups have become the new type of organization conforming to the readjustment of the industrial structure and adapting to the development of market economy, which have gradually developed into the important pillar of national economy as well as the major forces of international competition, hence its management problem has being captured more and more attentions.Enterprise management takes the financial management as the center, while the fund management is the core of financial management. Centralized Fund Management (CFM) is a useful management approach which suits to the requirements of enterprise groups'development, which can reduce capital cost, improve the efficiency of the use of funds, take the advantage of internal finance, perfect the internal capital market, and then make full use of the advantage of enterprise groups as a whole. Therefore, the fund management of the enterprise group becomes gradually the focus of theoretical and practical research.At abroad, the CFM get started earlier, and their modes are more mature. Nowadays, most of the international enterprise groups select the cash pool mode for CFM. The cash pool, as mode of the most advanced and efficient and representing the highest-level technique of CFM in the world, should be set as the goal of every group's endeavoring to achieve. However, in our country, there are strict rules about corporate lending and exchange control, which make it hard to establish the international-applied general cash pool mode. But through establishing entrust loans relations, the cash pool mode could be carried out in a disguised form. Overall, at home, settlement center and finance company are the modes applied generally, and the two organizations coexist simultaneously during the transition phase.Based on the Internal Capital Market Theory, Transaction Costs Theory, Funds Cost Theory, and Financial Controlling Theory, this dissertation adopts the methods of normative study and case analysis to study the mode of CFM of enterprise groups, explain how to choose the optimizing mode of CFM and propose the countermeasures. As a fact, these modes are neither superior nor inferior to each other. At different times and places, enterprise groups with different scales and internal structures should choose different modes. Enterprise groups should balance the benefit and risk, then choose the best starting point, seek benefit and avoid risk, then serve for the development of group to the maximum. Concretely speaking, the enterprise group, in the expanding period and its capital strength remaining to be reinforced, should choose the settlement center mode. When group's capital is strengthened and get the requisite qualifications for establishing financial companies, it should choose the finance company mode. While the group has strong capital strength and high technology level, it should cooperate with commercial banks and import the cash pool mode, thus making the mode of group's fund management system and process more efficient.