Research On Financial Control Of Modern Enterprise Groups

Enterprise groups are playing a critical role in the development of Chinese economy. However, with the expansion of enterprise groups and the extension of corresponding investment levels, the issue of investor control within the trust-agency framework is worthy of research. It's the common puzzle both in state-owned enterprise groups and privately owned enterprise groups.This dissertation analyzes the parent-subsidiary relationship formed in Chinese modern enterprise groups systematically and focuses on agency theory, property theory, juridical theory and the background of investor control in an administrative view. The article puts forward the details of establishing the financial control framework of enterprise groups—to consolidate oriented control by carrying out overall development strategy, to strengthen regularly control resorting to stock ownership and to intensify periodic control by preparing performance evaluation platforms. Under the framework, the thesis also discusses the main domain of enterprise groups financial control activity based on the operating characteristics of state-owned enterprise groups and mentions of three respects which are the emphases of control: the control on the operation and management consisting of accounting, budget management and performance evaluation, the control on external investment,financing and allocation of profits, the control on cash flows including clearing center,...