Research On Centralized Management Of Funds About A Group

After China’s accession to WTO, domestic enterprises are facing unprecedented external shock, in order to effectively alleviate the pressure of outside competition, local enterprises should adjust their organizational structures(such as the corporate group operation), the rational allocation of resources, corporate Group’s capital centralized management mode operation of Enterprise Group provide an important basis. A Group since 2006 since the establishment of financial settlement center of capital within the Group subsidiaries were unified planning and management.Through the current situation in A Group Settlement Center, analysis and management methods and management performance, and discusses the efficiency of capital allocation A Group funds centralized management model. After this paper, the foundation based on theory of centralized management of funds, combing through the literature, leads to the concept of centralized management of funds, objectives and management models, analyzes the A Group has made in the the management of funds focused on the achievements and existing issues.The study found that A Group at the beginning of the implementation of centralized management of funds has made certain achievements, such as the Group’s financing capability,the Group’s operational capacity has improved to some extent, at the same time get the efficient allocation of capital, reducing capital precipitation, finance charges generating savings, however, with the ongoing centralized management of funds, the Group is implementing a highly centralized funds under centralized management, profitability decline,increased financial risk, settlement center part of the functions missing, concentration of power and other issues has been showing. While in the Corps special background, forcing companies to re-output while ignoring profitability, A Group unreasonable interference in the government, but also had investments in saturation is still investing heavily to increase its production while ignoring the Group’s overall effectiveness. A Group for the problems, we made the following recommendations: Enterprise Group should optimize its existing management model; create professional fund management team; perfect internal control system, the establishment of a scientific risk assessment system in order to reduce Group’s financial risks; breakthrough corps institutional background restrictions, increase the Group operates independently.