Research On Capital Centralized Management Of Conglomerate

A large company formed by joining together different firms, has become the body of modern economy and the major mode of management against the background of today’s globalization. With the emerge of conglomerate, researches on how to manage the conglomerate have become more and more important while a proper capital management of conglomerate is the core factor in those researches and also the best way to help a conglomerate gaining ground in competition.In western countries, centralized capital management has been adopted by many multinational enterprises. Comparing with them, domestic conglomerates drop behind in both capital management and fund operation to such a great extent that it is becoming hard for domestic conglomerates to go global and it is necessary for them to reform capital management in order to become real modern enterprises. Centralized capital management is something new in China and this creation will energize domestic conglomerates.The first chapter of this thesis introduces the background information, object, significance and methods of this research. The second chapter reviews the basic theories of centralized capital management. The third chapter gives a comparison between three major modes of centralized capital management adopted by domestic conglomerate, analyzes their characters and objects, stresses different group enterprises are selected according to their specific situations and appropriate funding to centrally manage mode, and also uses SOWT to analyze both internal and external environment of domestic conglomerates in their centralized capital management. The fourth chapter stresses on how to build a well-organized centralized capital management system in the current situation and then advises that the large group enterprise choose settlement center and financial company division in parallel mode, maximize the role of both, to realize their complementary functions and the benign interaction. The fifth chapter emphasizes on key points in conducting centralized capital management; looks at the major methods adopted in centralized capital management; puts forward incentive and constraint mechanism in centralized capital management system and internal evaluation mechanism; advises to establish a group internal credit rating system, through the simulation of shares in the form of capital centralized management, which is established between headquarters and member unit benefit sharing mechanism. The sixth chapter takes the actual capital management of a certain bureau of CRG as the example to argue concerted theory and practice of centralized capital management.