Study On Financial Control Of Enterprise Groups

Corporation group is a corporation combo based on the highly developed modern business. It plays an important role in the national economic system. But the multilayer trustee-beneficiary relationship in the corporation group and juridical relationship between parent company and subsidiary companies makes the management of member companies in the enterprise group much more complicated than that of a single corporation. Financial control is the core in the management of corporation group, it is a guarantee to exert "scale of economy" , strengthen synergistic effect and risk-resistibility . To some degree, financial control determines the existence and development of the group. Due to the late development of corporation group, and because of the historical reason and the institution, there are many problems in the financial control. These problems hinder the development of the enterprise group. Therefore it is of great importance and urgency to research the financial control in Chinese corporation group.This paper observes the financial control from the perspective of headquarter of corporation group, based on the agency agreement theory and the report of Internal Control—Integrated Framework, and combined with the real case. The content of this paper is as follows:Part I analyzes the theoretical basis of financial control of the corporation group, describes mainly the concept, character and objectivity of financial control. Part II describes the three modes of the financial control of the enterprise group, brings forward the realistic choice in financial control in the Chinese corporation group, presents the main method of financial control in corporation group; Part III researches the reality, existing problem and challenge of XIAGC in financial control, puts forward some suggestions ,which I hope will be of some help to the situation of the company.