Financial Control By The Enterprise Group's Parent Company To Subsidiaries

Enterprise group, resulted from the highly developed social production and market economy, plays a key role in our country's economy construction. Building a well-structured internal financial control system by parent company to its subsidiaries means greatly to the healthy growth of the state enterprise groups. Beginning with the analysis on the current development and situation of the state enterprise groups, the thesis first points out that, establishing and strengthening the capital/equity linkage between the parent company and its subsidiaries should be the state enterprise group's priority. Then a further study on the definition, necessity, influential factors, basic principles, and modules of financial control system is carried on. Finally, based on above full theoretical discussion and using the financial experience from PepsiCo Inc. as reference, an overall financial control structure tailor-made for the state enterprise groups is conceived and a detailed design on corresponding financial control measures in the order of before, during and after event is suggested, which composes the core part of this thesis. Combining the theoretical exploration on financial control with the introduction of western multinational enterprises' advanced managerial experiences, the thesis hopes to offer a valuable and practical solution to our country's enterprise groups' financial control problem.