On The Cash Management Of Corporate And Its Improvement:A Case From CSIC

The thesis employs case study and theoretical analysis to explore problems and solutions about the mode of the capital control within a group company. In introduction, have reviewed the surface and essential of the lack of capital in Chinese group companies, and think that outside capital could not solve the problems of the lack of capital inside and individual subsidiary capital control could not replace with that of the group as a whole. It is the selection of reasonable and available capital control mode that is the main way to solve the lack of capital in a group company. On the choice of case, think that the solution of control mode selection can only be realizable if it is based on the group, which is typical and representative and there is extrusive problems on the capital control in. The first part of the article describes the case and makes an initial analysis through the introduction of the capital control practices, problems and reasons in CSIC group. Then, describes the influence factors of the group company capital control and their relationship and analyses the practices of national and international group companies by comparison and bases the selection of capital control mode within a group company. After that, in third and forth part, brings forward and describes the functions and statuses of the group administrative departments and the financial company in capital control mode. Finally, summarize the thesis and consider that the capital control mode should be improved if want to solve the problem of capital control and the group capital should be centralized. In the new capital control mode, the financial company, as the center of financing and settlement, should be placed on the hinge of the capital control and processing. The functions of group administrative departments are the establishment of policy and order, control of budgets and direction of investment, implement the steps of supervision and encouragement, etc. On these aspects, group administrative departments should harmonize and inform to financial company mutually. Only acting together, can the level of group capital control and the management efficiency be improved and can the problems of the lack of capital in Chinese group companies be solved.