Enterprise Group Centralized Management Of Funds

An enterprise group is a new type of organization adapting to market economy and mass production of socialization as well as a necessary trend led by the competition of enterprises in modern economic conditions. Since the 1980s, numbers of big enterprise groups have grown up in China. With China's accession to the World Trade Organization and the economical integration and internationalization, Chinese enterprise groups emerge rapidly.While with expansion of enterprise group, there are too many subsidiaries, complicated organization layers, lengthy management chains, which cause the serious capital management problem. Therefore, how to strengthen the management of enterprise groups, becomes one of the challenges which the Chinese enterprise groups faces. As the blood of an enterprise, cash is the core of financial management. However, at present most of Chinese enterprise groups' capital management has many problems, such as the backwardness of the management method, the jam of internal cash flow, extra accounts opened by subsidiaries, the shortage of efficient control of inflow and outflow and so on. Meanwhile, Chinese enterprise groups are lock of capital management information system and make the information transmission channel impeded. 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. Against such a backdrop, it is of practical significance to make a thorough-going analysis of Chinese enterprise groups.Capital centralized management as innovated management tool has been invented to adapt the development of enterprise groups. It is an effective way to perfect Chinese enterprise groups' capital management. Capital centralized management can lower the agent cost and develop the faction of an internal capital market and take advantage of internal financing. Chinese enterprise group lunch to put capital centralized management into practice actively and acquire several effects. However, the oversea transnational enterprise has fulfilled high concentricity of capital management by electronic information. Comparing this with Chinese enterprise groups, the level on capital management is unsuited to the development scale.The paper introduces the capital management of enterprise groups and main management mode, analyzing the present situation and revealing the problems of capital management of Chinese enterprise groups, and pointing out that capital centralized management is the way to perfect capital management of Chinese enterprise groups. Meanwhile, it makes a comparison to Chinese and foreign capital management modes and proposes the advanced points we need to learn. On such basis, the paper puts forward policy recommendations on how to strengthen the capital centralized management.