Research On Financial Control Of Chinese Group

Group is a kind of legal person united-corporations basing on the advanced development of modern enterprises. In the meanwhile, it is the inevitable results of large-scale socialized production and market economy development. The appearance of group has functioned as the drive and booster to the development of social economy, while exerting great influence on the improvement of people's life and the progress of the human society. As a multi-level legal person's association with networked property right, it is necessary for group to carry on financial control on each member in the group, by utilizing various financial means around the overall goal of the group's development. In this way the financial activities of each member in the group can satisfy the overall goal of the group's development and safeguard the whole interests of the group. Hence financial control occupies important status in the group's financial management. However, the group's internal financial control has always been a difficult problem perplexing all kinds of group's internal managements, which mainly manifests on the followings: the financial control content such as who carries control and what should be controlled etc. is not clear; the importance attached to the function of financial control is inadequate and implementing effects are unsatisfactory; the measures and means of financial control are unsystematic with the features of dense commanding officer's and certain casualness; the existing control measures only emphasize on "giving temporary relief , while not on "getting a permanent cure "etc..Due to the lack of the consciousness that financial control should be based on the ownership relation and trust & agency, there is not a perfect financial control system. Hence the group's financial control is so rigid and inflexible that it only has the name of "group", but not the substance of "group". Or the financial control is so scattered that it is only a "collection", but not a "combination", which results in the internal spoilage due to internal fight for resources and the poor reflection of the whole advantage.After China's entry into WTO, how can the group survive in the fierce market competition can't be ignored. So this thesis selects the issue of group's financial control as the research subject. On the basis of trust & agency theory, contractual theory and other financial management theory applied to the group, and combined with the successful experience of the financial control in the group abroad, the thesis starts with the main problems existing hi the financial control of Chinese group and conducts a systematic research on how to strengthen the group's financial control, together with putting forward some solutions to arouse the great concern about this issue in both the theoretical and practical circle.The full text is divided into five chapters altogether to discuss on the group's financial control:The first chapter comments on the basic questions of group. Through the recommendation of the different definitions of group put forward both in our country and outside, the thesis summarizes the intension of group. Then the fundamental characteristics of group are been analyzed. The thesis also systematically introduces the basic organizational structure and makes a comparison among them.The second chapter conducts an analysis into the characteristics of group's financial control, by referring to the traditional definitions of financial control. And the author proposes that financial control evolves from the multiple trust & agency relations, of which the capital serves as ligament. Then the importance of financial control in the management of group is expounded on. At last, on the basis of the concentration degree of the financial control power, the choice of financial control modes is probed into. At the meantime, the thesis proposes the factors considered when choosing control modes.The third chapter is the focus of the thesis. In this chapter, the main problems currently existing in the financial control...