Study Of Parent-subsidiary System Of Corporate Governance Issues

The enterprise groups are now playing an active role in China. However, due to the influence of past planned economy system and the lack of experience of establishing modern enterprise system, the present corporate governance under the system of the parent/subsidiary companies is not very perfect, especially in enterprise groups. Many problems in corporate governance of enterprise groups limit the corporations'strength and expand the operating risks. Therefore, researching the corporate governance problems of parent/subsidiary companies has great significance. Using the general theories of corporate governance, this paper makes a deep analysis to the corporate governance problems in Bainian Enterprise Development Corporation, and offers some practical suggestions. The paper is divided into five chapters. Chapter One concentrates on the theoretical study of corporate governance and its characters in parent/subsidiary companies. Chapter Two makes a brief introduction of Bainian Enterprise Development Corporation. Chapter Three analyzes its corporate governance pattern and finds out its shortcomings and defects. Chapter Four briefly introduces the corporate governance's features in American and Japanese parent/subsidiary companies, and then construes its useful points through these cases. Chapter Five, which aims at the existing corporate governance problems in Bainian Enterprise Development Corporation, puts forward some constructive suggestions to resolve some problems concerned with the following four aspects: strategic adjustment of industrial structure, system reform of the parent companies, development of the monitoring and controlling methods, and improvement of the subsidiary companies'governance structure.