The Fination Monitoring Of Chinese Enterprise Group

Enterprise group, as a new form of enterprise union in the reforms of economic system in China, is an inevitable outcome of development of social productivity and the market economy. It is also an economic associative entity which takes capital as a tie. With the development of the market economy, Chinese enterprises are growing so swiftly that a large number of cross-regional and cross-industrial enterprise groups with large scale and great strength emerge, which have great influence on the national economy.At present, Chinese enterprise groups develop rapidly, their scales become larger and the structures more complicated. However, the financial monitoring can not catch up with the speed. Some problems occur and restrict the groups' positive development, such as: inadequate financial control of internal subsidiary, higher financial risk, failed control of group cost and low turnover rate of supply chain. It's mainly because of the laggard of financial management and the neglect of the importance of financial monitoring in enterprise development.Recently, Academics have many research outcomes on the management mode and controlling method about enterprise groups, while the researching is still immature as for the financial management. Inadequate financial monitoring, which is closely related to a group's survival and development, will lead to failed management and financial crisis. Therefore, it's urgent to establish an effective financial monitoring system and strengthen the group's financial control. The key issue we should deal with is how parent company plays a core role in the enterprise group and effectively monitors the financial operation of the whole.This essay mainly deals with the subject of enterprise financial monitoring on capital management, human resource management, budget management and auditing monitoring. Taking an enterprise group in computer-channel industry for instance, it analyzes the governance structure and financial process of the enterprise group.Something I'd like to point out, the research can be improved with further the discussions on applied information technology, incentives and performance evaluation. I hope it can help strengthen the monitoring in our enterprise groups.