Research On The Innovative Application Of The Dual Mode Of Cash Pool And Internal Bank

Since the reform and opening up policy of late 1970,s,the economy of our country has developed a lot.With the growing strength of Chinese enterprises,enterprise group has become a dominant orgahization form of many corporations.The organization form of enterprise group is advantageous to the development of specialization and socialization of production collaboration.Thus,factors of productions are combined and resource allocation are more reasonable,which can help the company to gain scale effect.In addition,the enterprise group has an irreplaceable advantage on exploring international markets because this kind of organization form is conducive to enterprise reform and at the same time,the operational mechanism of these enterprise can flexibly change to adapt themselves to the market.The management of enterprise group is multi-layerd and multifaceted.The key of enterprise management is financial management while the priority of financial management is fund management.Fund,as the blood of the company,is vital to the survival of the company.The core issues of fund management for an enterprise group are how to effectively control the flows of fimds inside the group and how group members and headquarters participate in the management in order to maximize the utility of funds.So,for an enterprise group that has a certain scale,how to manage the fund to insure the smoothness of enterprise fund chain and make the enterprise function well?Aiming at solving this problem,based on the internal capital market theory,monetary capital theory,the internal control theory,the theory of performance appraisal,this article does a thorough case study on the centralized fund management mode of S group.Also,it makes a deep analysis from both the fund pool aspect and the internal bank aspect in order to interpret the operational rules of S group as well as the advantages and disadvantages.The article solves the problem of why S group is capable of implementing those two centralized fund management modes,and also explores the possibility of the popularity of those modes and provides some references for those enterprises who want to implement similar centralized fund management modes.