Holding Company In China Analysis Of The Financial Control

With continual intensification of capital operation and capital widening, holding company has become an important form of organization in modern business management and organization system. As core of control system for holding company, financial control acts a very important role for holding company to control its subsidiaries in essence. And as a basic instrument for holding companies, it pervades the whole enterprise operation in all stages and all aspects. Holding companies will fail to control its subsidiaries in essence unless they succeed in controlling them in finance. Moreover, successfully implementing financial control will be propitious to establish core competitive capability and continual competitive advantages.The thesis firstly defines holding company and specifies principal part of financial control as well as defines financial control of holding company. And then it reviews related researches to educe the object of study and cut-inpoint-- holding company finical control.Subsequently,it educes analysis on survey of finanical control of holding companies from developed countries with financial control of holding companies of China for reference. In combination with the three patterns of financial control system and considerations for selection of financial control patterns, it discusses the viewpoint that "relatively centralized financial control system is the current choice of Chinese holding companies". It highlights that its realization form is an organic financial control system consisting of rationalsystem of financial personnel, establishment of perfect financial system, focusing on centralized control on capitals, promotion of overall budget management, perfection of performance evaluation system, control in good time through financial integration etc. And also, it discusses intensifying financial control environmental construction to facilitate financial control and to go on smoothly to improve its effect in the two aspects of humanistic environment and mechanism environment. In conclusion, it analyzes with the example of China Datang Corporation, introducing and review the financial control system of Datang as well as putting forwards proposals for it.