Parent Companies And Subsidiaries Of The Group Of Companies Control Study

Nowadays, being universal and important, business groups are playing an significant role in our national economy. In business groups, parent companies' control are generally realized by subsidiaries' corporate governance.How to deal with parent-subsidiary relationships is the focus in corporation management. During the development in a corporation, more and more attentions from different aspects are paid on this topic by not only practitioners but also researchers. However, the progresses made in this field are poor,That's why this paper call management & control of parentcompany , it is importance how to select management & control of parentcompany mode , under the decided management & control of parentcompany mode, how should thecompany allocate the powers between the two entities on strategy, finance, HR, investment, , etc., and how should it establish a clear and reasonablemanagement & control interface through institution building, so that the parentcompany can have a good control of its subsidiary. And not limit to development in a subsididiary.