Research On Financial Control Of Group Company

In the process of market economy development in China, the competitions among enterprises are increasingly severe in recent years. The group companies formed through asset reconstructing, business combinations, and trans-industry merge can raise the huge social productivity, yield the great organization effect which is difficult for single enterprise, and enhance the enterprise competitiveness, which therefore play a more and more important role in China's economic life.However, many group companies cannot fully exert such a role and thus cause the resources waste due to the shortage of effective financial control system. And meanwhile, along with the sustainable development of group companies, many financial control systems are not applicable to the constant changes of the group company internal organizational structures, thereby hindering the group company development. Therefore, it is an urgent issue for group companies to solve how to control the finance of the subsidiaries in a comprehensive, flexible and effective way.S Corporation is a diversified state-owned group company growing up along with the China's rapid economic development in recent years, and has specified its strategy objective that real estate is taken as its leading pillar industry through the strong advantages over resources. However, real estate is a "new" business for S Corporation, and its urgent task is to build up a set of systematical, perfect and efficient financial control system applicable to real estate industry. In view of the current corporation development in China and the practical characteristics of S Corporation, this article concludes and analyzes the modes, measures and contents of financial control based on the theory clarification as involved in the group company financial control, and customizes a set of financial control system for the real estate business of S Corporation, which shall play a guiding significance for the group company development. At the same time, it will boast the reference value for the financial control of China's other group companies.