Holding Company Financial Operations Of A Number Of Issues

The holding company plays a very important role in the national economic development of every country in the world. A modern large-scale holding company is not only a regulator that coordinates the development of one country's national economy but also an engine that accelerates the growth of one country's economy. The financial management, which starts from value management, has already become the core of modern business administration. The financial management activity of a holding company is embodied in daily financial operations. Because of the particularity of financial activity, the financial operation of holding company is different from traditional organizational form of enterprises. This dissertation proposes that the holding company makes the equity capital operation as the core of its financial operation, and "the maximal value preservation and appreciation of equity capital" as the financial goal. The author attempts to probe into a series of theoretical problems on financial operations of the holding company in the thesis, so that it could offer certain help for the financial operation of holding companies in China. The thesis takes the financial goal of a holding company as its logical starting point, and the thesis is divided into six parts. The first part is the foreword. The holding company, s financial characteristic and financial goal are expounded in the second part. From the third part to the sixth part the author further analyzes the problem of financial operation with the financial goal as the core, including financing, the target choice of equity capital investment, the adjustment of holding equity capital. These parts also deal with the financial relations with the subsidiary and appraise the business performance of the subsidiary. These four parts are the logic content of this dissertation. The last part combining with the second board of market that will be set up in China discusses the withdrawal methods of equity capital. In detail, the dissertation explores the holding company financial operation as follows.1.It analyzes the financial characteristic of the holding company comparatively in detail. On the basis of this the financial goal - the maximal value preservation and appreciation of equity capital of holding company - is put forward. The financial characteristic of holding company is shown in the following aspects. Firstly, the holding company can fully utilize the capital lever. Secondly, the holding company expands rapidly through the capital operation of equity capital with the strategy of growth combined together. Thirdly, Merger and Acquisition should be frequently used in the course of capital operation of the equity capital. The financial goal of the holding company is explained as follows in the thesis. The financial characteristic of holding company is a " compass" of daily financial operations of the holding company. It makes the financial operation mode of the holding company change thoroughly for this goal. Realization of the large-scale production and realize sustainable development serves as a sub goal of a holding company, s financial activities.2.In the financial operations of a holding company, a large fund must be raised. In the dissertation the way of raising fund is studied. By modern capital structure theory and agency theory, it is evident that capital structure is very important to the holding company. The thesis brings forward a series of principles for realizing the optimization of the capital structure. It suggests that financial tactics should be taken to adjust the financial structure of holding company, which include changing the sum of debt capital to the equity capital and vice versa, repurchasing the stock of the holding company itself, raising money from the public for the development of holding company, and adjusting the debt structure of holding company and stock right structure, etc.3.The thesis considers that there are three standards for selecting the investment target of holding company, which include obeying the need of...