Research For Management And Control Over Parent-Subsidiary Company Concerning S Investment Company

The state-owned investment corporation, as one special branch during evolution of development of Investment Corporation, arisen in western developed countries, was regarded as development and evolution production of mixed economy states after the War. In China, as production of reform of state-owned companies and government investment and financing systems, the state-owned investment company developed during the transformation from planning market to marketing economy. As developing forward to investment holding group corporations from state-owned investment companies, the management and dominance over parent-subsidiary companies is a brand new subject to state-owned investment enterprise groups. This article takes research over systems, models, as well as methods of parent-subsidiary companies' management and dominance within field of state-owned investment groups, explores theoretical and practical meanings of optimized strategy of parent-subsidiary management and dominance system. The investment group S, established by means of administrative transfer, is a typical state-owned institution which is financially attached to S provincial financial Beauru. S investment group carries out enterprise management, independent adjust accounting, self-management, and the main function at the beginning is to rationally arrange and take advantage of financial funds for value, including all types of working funds, and part of specific funds, in order to meet demands of economical and social development of the province.Parent-subsidiary company management in the research for enterprises group is an essential topic in whatever theoretical and practical areas. The fundamental connections between parent companies and subsidiary companies are property rights, main body of legal person and holding relationships. The establishment of these relationships depends upon both of marketing and non-marketing methods. The main goal of management and dominance of parent-subsidiary companies is to maximize general benefits of parent-subsidiary companies, and the core of which is the power division between them. The system falls into three types: power-concentrated system, power-separated system and combination of the previous two. In this research, with reference to relevant opinions, from the viewpoint of companies operation, the management and dominance models of parent-subsidiary companies in the framework of modern enterprise systems are divided into three types: the-omission-of-company-operation-based administration-typed model, the company-operation-based operation-typed control model and the company-operation-based management-typed control model. The choice of management and control models of parent-subsidiary companies is affected by many factors. To choose a management and control model for a parent-subsidiary company we should combine the principles realizing the target of company management and control and the power change in the enterprise group, instead of going to extremes. In the process of management, the parent company should control the subsidiary company to realize its goals by the overall use of strategies, cultures, human resources, finance, information and examinations.According the practical investigation, company S adopted relatively power-concentrated administrative management model, which used to be positive, during the parent-subsidiary companies management. However, under the marketing economic conditions, practical management control ability of the parent company is relatively weak, different types identities of staff coexisting, lack of responsibility and positivity are all roots of negative effects of the abovementioned system. Because of the existence of operation capitals with various sources and natures, features of management and control demonstrate differentiated, so that the concept of sole management and dominance is not able to effectively exert upon different subject matters, effects of management and control are lack of Pertinence. Besides, strategy, culture and information control are not sufficient, development in finance, human resource and achievement effect control are, therefore, needed badly.In order to achieve double winning of the parent company and the subsidiary companies of the S investment Group ,the following should be done: better the management and control system of the investment group; optimize the management system which is authorized by state; make sure of the functions of the parent company ;better the operation and the organization structure of the parent company and the subsidiary companies ; establish the specialized committee to expand the function of the departments; According to the nature of the derivation of the propriety ,the reality of the subsidiary company, utilizing all kings of management and control ,choose a management and control model, establish scientific and incentive mechanisms to realize the development of the parent company and subsidiary company.