| Group Financial Management and Control is the vital content of group management. While, capital management and control is the core of enterprise financial management and control, and its efficiency plays a significant role in risk control and value added of corporate group. Because of the'special status'of the capital, as well as the improvement of internet technology, centralized capital management has become the group capital control's inevitable choice no matter which control pattern will be chosen. At present, there are two major capital centralized patterns employed by domestic groups, that is, settlement center pattern and financial company pattern.Differentiating with settlement center pattern, as a separate legal entity within the group, the group financial company can not only realize centralized control of capital, reduce precipitation between companies so as to allocate resources effectively, but also help the group to broaden the financing channels and improve short-term capital return rate of group companies. As a result, the financial company pattern is becoming the main pattern of group capital centralized control, especially for domestic corporate groups.As a result of complex structure and multi-agency relationship created by multi-level governance, financial management may be out of control. Thus, the first grade corporate governance structure should be established and has laid the basis for the improvement of group capital centralized management and control efficiency. Moreover, the implementation of the Chief Financial Officers accreditation system is benefit for developing financial control of parent companies on subsidiaries, that is, strengthening duties of parent companies and weakening duties of subsidiaries. To realize the capital control of parent companies on subsidiaries,'position'of subsidiaries should be determined at first so that capital usage rights of subsidiaries can be determined to realized the real-time monitoring of subsidiaries'capital. ?Simultaneously, such control should be connected to budget management under the aid of internet technology, and comprehensive budget management could be combined with the control of capital management, expenditure electronic approval, cash flow real-time management should be combined with control of accounts receivable/accounts payable. As a result, financial companies'functions of internal bank, financial planning and financial advisor can be fully exerted. In addition, the establishment of information management system can help enterprise groups to achieve more convenient, efficient and effective capital centralized management.Based on the above theoretical research, through collecting data, the paper established capital centralized control efficiency model on the basis of 3139 samples of the listed companies in Shanghai and Shenzhen from 2006 to 2008 for the purpose of studying capital centralized control tools like financial companies, Chief Financial Officers accreditation system and ERP's influences on corporate performance. The study found that majority financial companies are state-owned companies. The establishment of ERP management information system in state-owned groups can improve efficiency of capital centralized control, while the effects in not obvious in private enterprises. In private enterprises, Chief Financial Officers accreditation system can realize higher capital centralized control efficiency. However, subsidiary listed companies who own financial companies have lower management and control efficiency than other listed companies, and even the possibility of value damages exists. Such opposite conclusion may because as considering capital centralized control, financial company takes maximization of capital efficiency into account, but the empirical work is from the perspective of listed company. Therefore, when the Groups are taking centralized management and control, they should take maximization of Group integral interests into account at the same time. |
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