Research Of Financial Control Upon The Subsidiary Company For Business Group Under The Asymmetric Information Condition

The asymmetric information to generally exist, the parent company and subsidiary company have highly asymmetric information in the Business Group, Adverse Selection , Moral Hazard it causes strengthen parent company degree of difficulty of controlling and influence the Business Group's dependability of strategic policy. The Business Group structures the effective financial control system , launches the activity of the financial control certainly on the basis of asymmetric information terms too.In this paper has analyzed the financial control of Business Group in detail , under the asymmetric information condition, how parent company form and improve a effective and perfect financial control system, take precautions against and control the possible financial risk in the future of subsidiary. The thesis are divided into four main parts, sum up the financial control in the first part. Expound the fact about asymmetric information in enterprise Financial Control in the second part. In the third part is the theoretical research of the parent company's Financial Control upon subsidiary in Business Group under the asymmetric information condition, it is a subject part of the article, propose and explain the construction of Financial Control system upon subsidiary in Business Group under the terms especially. On the basisof the third pan, the last part combines the introduction that the financial control practice, appraise the financial control system for parent company to control subsidiary ,and propose improving advices, explain the application in the real case of the theory tentatively. The research focal point of this thesis is as follows:Define the nature of the financial control again, include board of directors , manager,etc. of administration structure in Financial Control system, the arrangement through the administration structure of the parent company of Business Group obtained the subject qualification upon subsidiary's financial control power , which is the effective important prerequisite of Financial Control upon subsidiary.Combine the agency by agreement theory, analyze the question brought by the asymmetric information between the parent company and subsidiary company, and discuss especially that the forms of the game between them and improves the mechanism , in order to get the method to solve the problem caused by asymmetric information. How to design one effective agreement contract to stimulate the agency , to reduce and control Moral Hazard, becomes a focal point of research of thesis.Limited reason and uncertainty of external environment condition of people is it, it trusts to be incomplete for the contract between the principal and the agent, the Business Group must perfect the financial control system. How to structure a financial control system containing the effective administration structure arrangement, the complete Financial control arrangement presetted, a financial control system on omni-directional, real-time financial course control and powerful financial security mechanism, becomes another focal point of the thesis, it is the important anticipated achievement of the thesis ,too.Use the financial control system upon the subsidiary under asymmetric information terms to analyze the real case in detail and propose improving advices, become the difficult point of the thesis and the ultimately value of the text.