Research On The Capital Centralized Management Of Enterprise Groups

With the establishment of China's market economic system and the continuous deepening of economic system reform, enterprise groups has become the business organization which is in keeping with the readjustment of the industrial structure and the benefits of scale economy. It has increasingly become an important main body in socio-economic activities, but its internal financial management problems have gradually become the focus of theory research and practice. At present, the focus on strengthening financial management has become the consensus of the majority of enterprise groups. Through centralized financial management of the group as a whole can achieve the goal of effective management of capital and control it well, and to make full use of its advantages to play the group as a whole in resources, receipt and expenditure to optimize the structure of capital, reducing the cost of capital to prevent operating risks, and enhance the profitability of the enterprise. Therefore, this paper will take the funds management of enterprise groups as research, to build centralized funds management system, to perfect the concentrated fund management model. Finally I hope that this paper can provide some useful recommendations for Chinese enterprises in the management of capital.This paper is mainly constituted by four parts; the first part is an introduction of the significance of research, research methods, research ideas, logical structure of the paper and the present study condition of centralized management of the funds in enterprise groups both at home and abroad .The second part presents some relevant knowledge of the enterprise group, and analyses the need for centralized management of funds in enterprise groups. The third part discusses the model of capital centralized management in China's Enterprise Group in detail and gives a comparison with foreign enterprises on the present situation, to point out the problems that exist in capital centralized management in China's Enterprise Groups and to analyze the cause of them.. The forth part sets up two kinds of concentrated funds management system in enterprise groups under the guidance of the goal of maximizing the effectiveness of funds and makes a management system of five levels clear. Besides, this part draws on the experiences of foreign enterprises, to improve the model of capital centralized management in our country.Research shows that China's enterprise groups have explored a wide range of centralized management of funds in the development process, but they lack a complete financial management system, besides, in the process enterprise group and its members in the financial management system have not straighten out the relationship between them, which will limit the advantages of model of the centralized funds management system and restrict the goal of funding utility maximization. Therefore, the paper initially constructs the centralized funds system of five levels , with the council of enterprise for leading, with board of directors or the group company funds management committee as the core, relying on the finance department of corporation, taking the accounts center (internal bank) or the finance company as platform, with each member business enterprise as the foundation .In addition to these, this paper gives the division of duties and responsibilities among the five different levels, and this is precisely the innovation of this paper. At the same time, this paper also discusses how to choose the very management style according to the different types of enterprise groups, and in this paper, it also learns from foreign advanced methods in order to enhance the role of the financial management system and to achieve the target of maximum utility capital.