The Study Of Financial Management System In The State-owned Company

The financial management of state-owned companies has been known as an interdisciplinary subject that relates to organization structure,company management and motivation control. The study of financial management in the state-owned company will not only extend the essence of financial management in China but also reflect the control structure of modern companies. What is more, it can also underline the importance of financial management and thus facilitate the company operation and financial management. Hence, the study of financial management structure in the state-owned company is the promising solution to the financial difficulty and effective operation in the state-owned company at present.After reviewing the theories related to financial management, this paper has proposed some ideas and also analyzed the internal connection and difference between financial management and company operation. This paper has also looked into the operation status and industrial feature of the state-owned company. By comparing with those advanced international enterprises, this paper has pointed out major problems existing in the financial management of state-owned companies and made a detailed analysis on the cause of those problems. Based on the analysis above, this paper has followed the general guidance of financial management. In addition, this paper has proposed a financial management system featured by focusing on the allocation of financial right, being driven by performance evaluation as well as relying on the exposure of financial information. This paper has also adopted an innovative approach to applying internal control to financial management system. Because the academic community has not yet agreed on the definition of internal control,this paper has emphasized the pillar role of internal control to financial management.