Research On Coporate Governance And Control Pattern Of Sino-multinational Operation Mining Group

It is in due course for China's mining groups to go abroad in an era of mining industry globalization, because with the rapid development of China's economy demand for all mineral resources are increasing and shortage of some mineral resources not only handicap the development of macro economy but thwart the rapid growth of mining groups. There has been a obvious rising tendency in China's mining groups transnational business activities. For China's mining groups,"go abroad"is only the first step and they should go further to"have a sound footing"to achieve sustainable development, which requires these groups to establish advanced governance system and good control over overseas subsidiaries.My thesis delves into China's multinational mining group's corporate governance from three perspectives which are governance system and main traits of the parent company of these mining groups; governance system and main traits of the overseas subsidiaries and control patterns as well as centralization or decentralization modes in the governance of parent-subsidiary relationship. Multinational mining groups governance have some specific characteristics, including high governance risks great difference in subsidiary governance influence of parent company's governance status on subsidiary's governance the influence of systematic environment of host countries on subsidiary's governance. The selection and enrollment system of crucial members in subsidiaries will have influence on the efficiency of the subsidiaries. The enrollment and selection pattern of expatriate managers for subsidiaries will evolve from home country pattern into localization pattern. China's mining groups are at the first stage of multinational operations and are in a status of home country pattern in the center and localization pattern in the peripheral.The control pattern and centralization or decentralization mode in the multinational mining groups are the key content of my research. The control pattern is divided into three categories in my thesis, which are governance control, administrative control and platform control. And I construct an index for group centralization level as well as a model of centralization and decentralization from the perspective of management. Multinational mining groups must make a thorough analysis of parent company's environment and overseas subsidiary's environment. The overall centralization index is a weighted average, based on which we can decide on whether the group should take centralization or decentralization mode.On basis of these researches from three perspectives, I do a positive research into ZIJIN Group and Sino-steel. ZIJIN Group's governance is based on governance control with both centralization and decentralization between the Department of International Business and regional company, but decentralization being the keynote. While Sino-Steel is based on platform control with centralization between the Department of International business and core subsidiaries,Sino-Steel finds their platform for"control"by means of information technology. In the end, I put forward some systematic measures for the improvement of corporate governance in China's multinational mining groups.