Group Financial Management Methods

The finance governance theories were first established by the western finance theorists, and streamed into our country in 80's of 20th century. Finance governance is an important composition of corporate governance, it is a series of system arrangem ents that distribute corporate finance power among stockholders' meeting , board, management level, supervisory committee etc. Its developments are not only under the yoke of the development of corporate governance structure, but also much more influenced by business scale and organizational formation. As an important constituting part of business enterprise in our country, corporate groups play very important role in the economic and the political life of our country. With the further progression of stateowned business enterprise reforms, and increasing pressure from the global competition that national enterprises have to confront, it has become a trend to develop large business enterprise group. Enterprise grouping process has brought a boundary problem for enterprise's finance management, the contents of the corporate group finance governance includes not only distribution of finance management power, but also interests equilibrium problem of each business enterprise inside the group. In reality, the corporate finance governance has these or those problems, such as the supervision strength of the group company is smaller, appearing " hollow " condition; complications of agent relations, inefficiency of agents, disfunctional finance supervision; the excesssive intervention from the parent company to the subsidiary; disfunction of group budget system and regulations.The contents of this thesis reveals the reason of the existent irregularity and the formation in the finance governance of group company, and put forward the method and the measure of improvement by analyzing our country group company history and type, characteristic and legal person of the formation manage structural present condition, and further analyze present condition and irregularity existing in group corporate governance medium.The whole text is totally divided into 4 chapters. Chapter 1 is the finance governance theories background, mainly studies corporate governance theories foundation and finance governance. Chapter 2 is group coporate finance management, expatiating on history and characteristic, corporate governance structure, finance governance and the characteristics of its management system carried on elaborating of groups company; Chapter 3 is group corporate finance governance development, mainly analyzing existent problems of group corporate finance governance medium and the method for solving problems; Chapter 4 is the case analysis for some group company.This paper investigates the finance governance theories, at the same time, it also sets CTC group company for an example to research into the corporate finance, in order to find the methods and the measures which tallies up group corporate finance governance. These methods and measures are not only useful to the CTC group company, but also to other group companies.