The Research About Financial Control On Group Company

With the gradually deepening of the capital operation and capital expansion, group company, characterized with highly professional and optimization of internal factor, is becoming an important organization form of modern business management and organizational system and also adapts to the development of modern productivity and market economy .After the advent of group company, it is found that the traditional internal financial control methods which are usually adopted by single enterprise can not be applied to group company better, which constitutes a challenge to the internal financial control within the group company and then gives birth to some new financial control methods such as company governance structure control, organization structure control, comprehensive budget control and performance evaluation method .Accordingly ,this paper focuses the research on financial control merely from the view of performance evaluation method.With a specific research objection of group company, this paper is divided into two parts i.e. financial performance evaluation and investment performance evaluation according to the cash flow direction. This paper is organized as follows: first, the fundamental theory relevant to financial control and performance evaluation is briefly described. Then the process of performance evaluation control is addressed. Finally financial performance evaluation and investment performance evaluation are deeply discussed respectively with the order of performance evaluation target, performance evaluation index, and performance evaluation standard and performance evaluation method. Since the internal transfer price play an important role in the evaluation of financial performance and investment performance, this paper discusses it with one chapter. For the financial performance evaluation, the author study it from the following fields: the finance cost ,the finance risk ,the finance structure and the finance paid-off ability . For the investment performance evaluation, the author study it from the investment effective and efficiency, the safety and the wholly of assets which the group company invested . As for the subsidiary and the full subsidiary ,we must evaluate their performances comprehended.After seriously exploration into the financial systems of WISCO, this paper, during its research analysis process of the WISCO's successful experience, induces, summarizes and extracts some valuable reference from which both the interested theorists and interested practitioners can draw lessons.The result manifested: as an effective and major financial control method, the performance evaluation can take an important use in the group company financial control.