Research On The Management And Control System Of Parent And Subsidiary Companies Of State-owned Enterprise Groups

In the 40 years of reform and opening up,China has formed an enterprise group dominated by state-owned enterprises.These groups of enterprises,which play an important role in China’s economic development,have been restricted by the problems of group governance and the control of mother-subsidiary companies,despite their large scale in terms of assets and quantity.Because the mother-child control is more difficult to handle,over-control,the subsidiary to operate as a subsidiary,is not conducive to the development of its own subsidiaries;excessive decentralization,a subsidiary to become an independent kingdom,loss of internal oversight,corruption and malpractice,There may even be business risks,leading to the loss of the Group’s interests.The research on the management and control system of the parent company of the enterprise group is conducive to enhancing the core competitiveness of the group company and promoting the synergy within the group company,which is conducive to the improvement of the national economic strength and the improvement of the international competitiveness.This paper first collects and organizes the relevant documents and gives a preliminary understanding of the relevant theories of the group management and control.It introduces the concepts of the state-owned enterprise groups and the parent-subsidiary companies and analyzes the theories related to the group mother-child management and control,involving the separation of ownership and the agent Theory,property rights theory,internal control theory and transaction cost theory.This article will be divided into three types of control methods are:capital control,strategic control,administrative control,centralized degree from low to high,in reality the enterprise groups will be based on industry characteristics,competitive environment,the size of the organization,development strategy,development Stage,leadership style and other conditions to choose management and control mode,and timely adjustments to improve management and control effectiveness.The specific management and control methods in the parent-subsidiary company’s control system are:strategic control,financial control,human resources control,culture control,information control and internal audit control.Z Group,a provincial-owned large-scale state-owned financial conglomerate,is strategically positioned as a financial holding group that covers four major sectors of the province,including policy-based finance,industrial finance,inclusive finance and new-format finance.The factors affecting the control of Z Group’s parent and subsidiary companies are external environmental factors and internal environmental factors.After considering the strategic needs and business structure of the enterprise group,Z Group selected the strategic management and control type of management and control.The strategic control type is between the capital control type and the administrative control type.The parent company’s management functions are complete and can be applied to the subsidiary company.Provide more comprehensive and professional guidance,suitable for companies whose business types are relatively concentrated in a certain area and focus on a certain geographical area.The type of capital control may lead to the unclear positioning of Z Group’s development,lack of prominent core business,and weak headquarters control,which makes it difficult to form a joint force.Administrative control type is suitable for business operations that are relatively single and do not require member companies to make individualized business decisions.At present,the management and control system of Z Group’s parent-subsidiary companies is relatively perfect.All aspects of management and control measures are involved.However,the management of refined products is still not enough.Organizations need to be optimized.The core functions of human resources management are not in place.Cultural construction needs to be strengthened.Low level of development of these issues.Combined with the characteristics of Group Z,this paper designs the guiding ideology,basic principles and general objectives of parent-subsidiary company management and puts forward specific and comprehensive optimization measures.