The Study On Overseas Investments' Capital Control Of Transnational Business Groups

Business group is the combination of single enterprises, aiming to keep pace with enhancing market competition and social economic development. The multi-industrial and trans-regional business groups can fully take advantage of economies of scale and scope, increase return on investment while reduce risks. Thus, business groups'development ability representes and determines the country's economy strength. The development of Chinese business group started in 1980s, and has formed a set of internationally competitive transnational groups. Since China has entered the World Trade Organization, as well as Chinese government's vigorously promotion and support, more and more Chinese business groups have come into the international market which is characterized by highly marketization,openness and interdependency, so as to participate in a broader space for integrating resources,exploiting markets and learning advanced technology and management experience.Although Chinese transnational business groups have made great achievements in internationalization process, we have to realize that overseas markets are filled with various risks and uncertainties which may be unfamiliar to domestic enterprises. Entering the international market means exposed to rapid technology progresses,intelligent production processes,informatization markets,different social and cultural background,shortening product life cycle and changeable political policies. Due to Chinese historical and existing economy system, our transnational business groups lack advantages in international operation experience and management ability, as well as competitive technology and marketing capabilities.In order to solve the above problems, this thesis illustrates an integration framework and detailed approach system to conduct effective control on overseas investments and subsidiaries, which is based on capital control and aimed to realize overseas investment capital's appreciation, as well as reach the optimal goal for the whole group. This thesis firstly disusses the background, purposes, significance, research status, the main contents and innovative points of the research. Then, this study reviews the major theories of management control, internal control and capital structure improvement. Thirdly, the thesis builds an overall framework and mechanism for transnational business groups'overseas investment control, as well as structures the objectives,principles and modes of investment control system. Fourthly, the research introduces the detailed methodology systems of overseas investment control system. On the basis of the previous research, the last part analyses the status quo of Group A's overseas investment control, so as to propose an effective and efficient path for Chinese transnational business groups'overseas investment control practices.