Research On Centralized Capital Management Of HS Enterprise Group's Financial Company

Enterprise group,as a legal entity commonwealth,involves a large number of enterprises and large-scale capital.Also its capital management is complicated.Effective capital management can not only provide solid financial guarantee for the development of member units,but also provide important guarantee for the sustainable development of enterprise group.In today's economic situation,multinational corporations generally use centralized management of capital,especially the world's top 500 enterprises.More than 90%of them have adopted centralized management of capital,and 2/3 of which are through financial companies or financial services companies.It has been proved that this centralized management model is advanced and effective.With the financial company's mature operation in multinational enterprise groups,it brings more and more economic benefits.Chinese enterprise groups have gradually realized its meaning,and explore to applicate in practice.As a large-scale state-owned cultural enterprise group,HS enterprise group also is not a exception.In response to its "cultural and financial integration" development strategy,HS enterprise group sets up its own financial company in 2014,which is the first to set up financial company in publishing media industry.This paper uses theoretical analysis and case study methods.Firstly,it introduces the connotation,main contents and advantages of the centralized management of capital,and describes the characteristics,functions and business of financial company in detail.At the same time,it analyzes the difference between the financial company and the clearing center through FADA,which shows the advantages of the financial company.Secondly,taking the HS enterprise group as an example,this paper analyzes the effect of centralized capital management through financial company.Besides,it also analyzes the current problems of HS financial company.Finally,in view of the current problems,some suggestions are put forward in order to provide theoretical and practical guidance for HS financial company.