Based On The Internal Capital Market: Research On Centralized Fund Management Of COFCO Finance Company

With the development of economic globalization and market economy,the group company as a kind of enterprise organization form is widely used.In our country,it has initially formed a number of large-scale,strong strength of large or large group enterprises.The theory of internal capital market,one of the most important theories in the research of enterprise's internal capital allocation,fully affirmed it has more advantages of solving asymmetric information,reducing transaction costs,increasing the supervision and incentive,and allocating resources than external capital market,and it provides a new perspective for us to research the enterprise group.However,centralized fund management,as a main fund management mode of our country,is conducive to the formation and development of internal capital market.Similarly,the formation and development of internal capital market can help enterprises to reduce transaction costs,obtain financing,allocate resource,transform industry and develop market strength.At present,more and more group enterprises use centralized management of funds to improve the efficiency of the use of funds,and the establishment of the financial company of the group enterprises has played an important role in implementing centralized management of funds.This paper through the method of combining theory with case,firstly introduces the background and purpose of the research.Secondly,the paper introduces the interaction of internal capital market and the fund centralized management,and focuses on the comparative and analysis of the present four funds centralized management mode,and describe the process of using financial company to improve centralized fund management in details.Thirdly,the paper take enterprise group of COFCO as an example,and research its funds centralized management mode and process,so as to make a conclusion COFCO group finance company's funds centralized management problems through financial analysis.Lastly,the paper put forward recommendations on enhancing management effectiveness of centralized management of funds with financial companies as a platform,in order to provide guidelines on the theory and method of internal capital management of group enterprises in China.