Study On The Relationship Between Funds Central Management And Enterprise Value

After 1990 s, with the rapid globalization of world economy and the increasingly more fierce competition among transnational corporations, funds, which is regarded as the blood of enterprise, has gained a lot of attention from both theorists and excutives. As a company grows larger and larger, funds are playing more and more important roles in the management of large-scale enterprise, especially conglomerate. Nowadays, there are ubiquitily many problems in funds management: funds are too disperse to have Integrated benefits; funds monitoring is not so efficient that many assets have been lost; the benefits of funds management has been ignored. Currently, funds central management has become an inevitable choice for conglomerate. Funds central management is in favour of slashing financial costs, making up an effective prescription Internal funds, monitor risks in time, enhancing credibility and financing capacity. As a result, funds central management will contribute to the value of an enterprise.By reseach, the author finds that the emphasis of studying on funds central management and enterprise value is on the pattern and ways of funds central management. The author realizes that little study is about the result of funds central management, and the relationship between funds central management and enterprise value. On the basis of studying the present literature about the theory and methods of funds central management and enterprise value, the author shows us a series of graphical representation to revael the interrelationship between funds central management and enterprise value. Furthermore, combine with the data of Petro China, the author analyses the influence of funds central management on the enterprise value of Petro China. At last, the author comes to a conclusion: by slashing capital costs, reducing funds occupation, adding cash flow, improving capital turnover, enlarging investment scale, guarding against financial risks, funds central management contributes to the increase enterprise value.