Study On Fund Management Model Of Enterprise Groups

Fund management is the core content of financial management, involving every aspect of business operations, thus its importance is self-evident. Currently, domestic enterprise groups encounter problems of fund management: decentralization of the funds and with high overall loan-deposit radio; unscientific decision-making for investment and financing and with irrational capital structure; ack of financial revenue&expenditure control and with unsound budget system; external cycling of funds due to independence of secondary enterprises. In order to solve these problems, the establishment of effective fund management model has become the consensus among enterprise groups in China.Since May2011, the fund management model provided by finance company has been adopted by Yunnan Power Grid Company. The implementation of this model decreases the financial expenses, effectively controls the asset-liability ratio, greatly enhances the liquidity, and improves company’s profitability. However, it has also exposed some problems at the same time, such as the long approval process of funding plan and with payment difficulties for unscheduled funding; lack of cash flow budgeting with difficulties to control the plan; lack of investment management with passive fund management; limited function of fund management system leads to low efficiency; insufficient provision of financial company, etc. All of these problems can affect the advantages of fund management model.To analyze the subsistent problems of fund management model within Yunnan Power Grid Company, and find out the principle influences of fund management model within the enterprise groups, could bring significant reference value for fund management of domestic enterprise groups.This thesis is divided into seven chapters:Chapter1:Introduction-Introduce the background&significance, content&framework, research methods Chapter2:Foreign research status and domestic literature review-Put forward the theoretical basis basing on the introduction of research status in abroad and the reviewing of studies on domestic fund management model.Chapter3:Theoretical analysis-Define the concept of enterprise groups, expound the theoretical foundation and basic characteristics of the enterprise groups formation, and introduce fund management within enterprise groups in terms of basic content, principle and formation.Chapter4:Fund management characteristics, existing problems, and cause analysis of domestic enterprise groups-Expound the current situation, existence problems of domestic fund management, and analysis the cause of these problems.Chapter5: Fund management model study for enterprise groups-present and evaluate the five models of fund management basing on the explanation of the importance on correct selection of fund management model.Chapter6:Case Study-Point out the improvement scheme according to the evaluation of fund management model within Yunnan Power Grid Company and draw conclusions while select the fund management that the optimal fund management model is the one suitable for the actual situation of enterprise groups.Chapter7:Factors to be considered for selection of funds management model by the enterprise groups. Introduce the factors to be considered for selection of fund management model by the enterprise groups. This introduction has a good reference values for selection of fund management model by domestic enterprise groups.The main contribution of this thesis:Put forward that the optimal fund management model is the one suitable for the proper characteristics of enterprise groups. Basing on the analysis of fund management model within Yunnan Power Grid Company, this article which has significant reference values summarizes the issues to be considered while select the fund management model by enterprise groups.