Research On The Financial Control Of Business Group

Business group is a corporation combo based on the high development of modern enterprise. Business group plays an important role in a national economy for one country, even as it determines the strength or weakness about the international competitiveness of one country. But multilayer trustee-beneficiary relationship in the Business group and corporation relationship between parent company and subsidiary make the management of Member Company in the business group complex. And constructing business group is in order to exert financial synergistic effect, save transaction expense, strengthen financial risk-resistence, etc. Financial control is the core of financial management, and it is a grantee that Parent Company makes the effective financial control on subsidiary to realize the advantages of the business group, so financial control becomes a core tache in the development of business group, even as it determines the existence and development in some degree. So it is the primary problem solved in the development of business group to make a research about financial control of business group. Because a lot of business group form with the administration in the background and develop for a short time, there are many problems in the financial control of business group in the stage; it is instancy to make a research about the financial control in Chinese business group.The content of this paper as follows:The part Ⅰ (namely the charter 2) analyses the theoretical basis of financial control about business group, and describe mainly the concept, character, effect and objectitive, ect. The part Ⅱ (namely the charter 3) classifies the two kinds of financial control from the strategic lay: strategically planning and strategically control, connected with the business environment of business group and on the basis of the traditionalkinds of financial control. And make the practical choice about the financial control modes, connected with the development actuality of Chinese business group. The part III (namely the charter 4) try to construct the capital control mode with the central thought of Business Process Reengineering, so that make up the weakness of the traditional financial control modes in china. The part IV (namely the charter 5) analyses many problems of the financial personnel control that parent company on subsidiary, and put forward some flawless suggestions about to upgrade the reality.The innovation of this paper as follows:I endow the centralization mode and decentralization mode with the new meaning that breach the traditional financial control locates only in the daily control and extend to the strategic lay on the traditional centralization mode and decentralization mode. It allocates the financial control right oriented with strategy and tries to classify the modes of financial control into two kinds: Financial mode of strategically control, financial mode of strategically planning. So that the financial management of Chinese business group suits the need of the practice and the innovation of financial management in the new economic position.