Discussion And Analysis The Mode Of Funds Centralization Management Of A Enterprise Group

With the continuous development of economy,corporate group,as a significant role of international economy and finance system,has increasingly serious issues of improper capital allocation and over-centralized management due to expansion of asset size,lengthened capital chain,extensive geographical distribution and other factors.The contradiction between over-centralized organization and decentralized capital management leads to low efficiency of capital management,lack of supervision of subsidiaries and other serious issues.It is critical for a corporate group to efficiently utilize capital,to appropriately low the cost of capital,and to timely avoid financial risks.The purpose of this essay is to analyze and discuss the cause of centralized fund management,the current stage of fund management centralization and the five prevailing models of centralized fund management,which are unified management,petty cash disbursement,internal banking,fund-balance center and financial company,respectively.Specifically,by analyzing the case of corporate group A's centralized capital management,we raise a further discussion regarding to how to solve the contradiction mentioned above and improve corporate fund management.