Research Of Financial Control Upon The State-Owned Enterprise Group Under The Entrusted Agency Theory

With the development of productivity in china, enlargement of the enterprises, complication of the management, the pattern of decentralization popularized. The owner delegate the right of management to a deputy instead of the traditional, owner and runner are one corporation. The owner does not run the company while the deputy executive the power of management. This new pattern is beneficial to produce the best possible results of the capital and the human resources, making the goal of capital and human resources unified and efficient. It comes to the problem when the owner delegates the right to the runner. The differences between their goals of profit, preference of risk and asymmetry of information will cause the problem. So it is meaningful to discuss the financial control of the subsidiaries.The goal of this essay is to discuss how to reduce the affect of delegating the right of the owner, and build an appropriate for our enterprises all-in-one financial control system.This essay uses the basic theory of delegating the power and the financial control as the first. It introduce the concept of the deputy, after explained the relationship between the owner and runner and why need to delegate the power, after that, introduce the problem of the power delegation, at the same time ,combining the feature of ownership and management, analyzing the perform of the deputy, the difficulties and disadvantages in financial control of enterprises at present. The corporation must set up an effective system of financial under the condition of power delegating. Firstly, it should get the right of financial control. Secondly, monitor the process of financial management and formulate the reasonable guarantee system. With mentioned above, can the corporation have effective management, reduce the cost and maximum the profit.