Optimization Of Capital Centralized Control Model Of Weiyuan Industrial Group

As an essential resource to the survival of corporations,capital movements have an significant influence on every aspects of companies’ operations and investments,which guarantees an enterprise the ability of sustainable development.In recent years,however,corporation groups have rapidly developed in a more diversified and globalized way as a response to the fierce market competition.The following serious of problems,especially the longer capital chain,have stood in the way of those groups’ further development.According to business-matching theory,capital centralized management becomes the way to avoid problems such as decentralized management,weak monitoring,inefficient capital use and unreasonable capital distributions between subsidiaries.Therefore,optimizing the ability of capital centralized management leads to a smooth and efficient capital circulation which contributes a lotto the survival of corporation groups.Based on the case of Weiyuan Industrial Group,the paper analyzes the current situation of its capital centralized management pattern and summarizes the potential problems of such management pattern.According to above issues,we optimize and innovate to group capital centralized management pattern,which provides new ideas to capital management reforms.To explore the path of optimizing capital centralized management pattern,the paper follows a progressive frame:problem-analysis-solutions.First of all,to determine the research direction by introducing the concept of capital centralized management and its significance in capital management activities of enterprise groups;then to figure out research blank by reviewing prior work;then build theoretical foundations to subsequent research through the overview of capital management theory;finally,to analyze the case of Weiyuan Industrial Group and come up with solutions on optimizing capital centralized management,which theoretically supports other enterprise groups9 choices on capital management pattern.According to the theory of capital pool,we design double-pools capital central management pattern which contains both real capital pools and nominal ones for Weiiyuan Industrial Group.Under this pattern,real capital pools are built in the parent company and all wholly-owned subsidiaries to achieve a unified management form in which local and outside capital can allocate to headquarters in time;in the meantime,nominal capital pools are set in holding companies so that the goal of capital sharing cae be realized without transferring capital.Compared with present literatures,the contributions of this paper is as follows:1.Generally and systematically introduce the advanced financial management model of capital central management,which makes more enterprises learn about it and be willing to apply it to practice;2.Based on the case of WeiyUan Industrial Group,improve the present problems of capital management and come up with a complete optimizing strategy,which brings new ideas not only for Weiyuan Industrial Group itself but for the capital management innnovation of other Chinese enterprise groups.Limited by the length of the article and the time of research,we choose Weiyuan Industrial Group as the only example of the research,which is of a representation but also limitation.It is not convenient for corporations of different industries to use such experiences for reference,which helps little to the extension of the theory.In further study,we strongly hope that enterprises from different industries are included in subsequent research so that the capital centralized management theory can be improved and completed.