A Study On Funds Management Models Of Enterprise Groups

With the economic globalization and competition internationalization, the enterprise groups have held the protagonist of the global economic activities, and become the main tool for every country to participate in the international competition. Therefore, how to strengthen the management of corporation groups, especially the financial management, has become a question of concern. The funds is a blood of the enterprise, and its distribution in all the courses of the enterprise management, such as purchase, product and sell, makes itself the core of financial management.At present, many enterprise groups have various problems, such as the backwardness of the management method, the jam of internal cash flow, the circulation outside the groups' accounts as a result of extra accounts opened by subsidiaries, the shortage of efficient control of inflow and outflow and so on. The failure of cash management makes the corporation groups lose a united information platform and makes the information transmission channel impeded, and the financial data, the funds settlement, the finance and investment not be centralized. This leads to the decision-makers be incapable of mastering the overall manufacture and management information accurately and timely and implementing the effective management, supervision and control.To solve the above problems, the enterprise groups should optimize their funds management models, i.e. to implement centralized funds management. From this angle, this thesis firstly reviews funds management of enterprise groups to define both enterprise groups and funds management more clearly; then, based on the relevant theories of funds management, the existing centralized funds management models are analyzed and evaluated, and implementation by enterprise groups at home and abroad are compared. Finally, a case study on a certain enterprise group of iron and steel industry which has implemented centralized funds management is made, and its effects and improvement would be analyzed.