Centralized Management Of Funds Of The Enterprise Group

The theory of Internal Capital Markets (ICM) is one of the most important theoriesto study the allocation of the internal funds within firms. It affirms the advantages andfunctions compared with the external capital market at the following aspects: solvinginformation dissymmetry, reducing transaction cost, enhancing the supervision andprompting, allocating resource efficiently, and provides a new view for us to study theinternal capital of the firms group. Analyzing the firms group with the ICM can providesthe theory basis for effective operation of the internal capital and meaningful reference forthe development of firms group of our country, especially for the financial companies.How to improve the capital using efficiency is always an important problem for thedevelopment of firms group, and capital management is the core issue of the financialmanagement. With the development of firms group and foundation of parent-subsidiarycompany system, the capital management problem becomes more and more prominent andthe financial risk becomes serious. How to improve the capital efficiency and keep awayfrom the financial risk are the important issues of enterprise capital management. Currentlycarrying out the capital concentration management is the important way of improving thecapital efficiency, and strengthening the capital concentration management has alsobecome the common view of most firms group.This thesis includes five parts. The first part introduces the theory of ICM simplyaround the following aspects: the differences between internal and external capital markets,the existence of ICM and the allocating efficiency;the second part elicits the primarycapital concentration management models;the third part analyzes the effect of capitalconcentration management;the fourth part discusses the differences of national and foreignfirms group capital concentration management model and existent problems during themodel operating process of the domestic enterprises;and the last part expatiates themethods of strengthening capital concentration management and keeping way from risk.