Financial Control Study Of Group Companies

During the past few years, although group companies development very quickly in China, they show no scale advantages. At the same time, inner financial control system haven't been set up. Other systems, such as decision-making system, performing system and supervising system are still faulty. All those factors lead to group swell blindly, without any efficiency.Financial control is an important means for group to control its members. On the one side, group's administrator-control contains not only production activity, but also equity capital activity. All of these activities can be controlled according to finance. On the other side, the relationship between group members is mainly capital intercourse relation. So, financial control, which can go deep everywhere of the group, become the most important controlling means.There are a lot of financial control problems about group in our country, for example, how to financially supervise its members efficiently, how to prevent managers away from shortsighted activity or laziness phenomena, how to demarcate members' right and responsibility. These problems are in common and basic administrator problems. If fails to solve, they will restrict the development of group companies, or even threat its existence. So we need deepen our cognition about group financial control.Almost all exposed problems in group companies born of faulty financial control system, so how to strengthen group-financial-control become very important.Efficient financial control is the best means to insure the quality of group financial information, to improve the correctness of group decision-making, and it is also a necessary tool for group keeping financial risk away. What's more, nothing is more important than setting up a justice and scientific performance appraisal system. To consummate all these work, it is very important to set up a financial control system.Up to now, most scholars argument for effect that bloc framework acts on financial control mode, and few of papers have refer to the topic about group financial control means. Even those that touch of the topic is not all-around enough, mainly because they don't roundly research how to manage subsidiary companies by financial control in group-environment.This paper is mainly discussing how to design a perfect group financial control system, so that group financial control can form a system which strength the group's maneuverability.This paper includes five chapters:The first chapter is the exordium. It mainly introduces the background and meanings of the paper, reviewing domestic and international research result, explaining why the author chooses the topic. At the end of the chapter, the author accounts for its research Concepts and method.The second chapter is mainly about group financial control. In this chapter, the author analyses how group financial control developed, and explain its meanings. Then he defines the subject and object of group financial control. He also analyses the three basic modes of group financial control, and those factors that affect making choice of which mode.The third chapter is mainly analysis the problem in group financial control and why these problems exist.The forth chapter is about how to strengthen group financial control. The paper give some countermeasures for those group companies that have financial control problems. These countermeasures include six aspects: HR control, fund control, financial system control, budget control, inner audit control and performance evaluation.The fifth chapter is case analysis. In this chapter, the author take Zhongshan Public Utilities Group Companies as an example, analyzing it from HR control, capital control, financial system control, budget control, inner audit control and performance evaluation.