Font Size: a A A

Foreign Equity Investment Enterprise Group Financial Control System Design - Analysis Of The Cape Group

Posted on:2003-04-14Degree:MasterType:Thesis
Country:ChinaCandidate:F LiuFull Text:PDF
GTID:2206360092465256Subject:Business Administration
Abstract/Summary:PDF Full Text Request
In accordance with enterprise group's connotation and the basic principles of corporate governance, this paper intends to clarify the fact that separation of ownership and managing right is not only the features of modern enterprise system, but also a prerequisite of corporate governance. Therefore on the one hand we should use the successful experience of corporate governance in Europe and the USA for reference, and on the other establish an improved corporate governance of the CAPE Group in accordance with the actual conditions of the country and the organization, which will be building an inspiration, restriction and supervision mechanism which will effectively constrain the agent in order to keep the benefit of owner as the same as operator's in the greatest degree. It is too many ways for enterprise group to control subsidiary companies, but financial supervision control is the prerequisite, base and core of its control system. Based on the interest proportion of enterprise group and the control extent, there will be four types of enterprise: control, co-control, important influence and non-influence. The types can break into sub-types considering the reality of the CAPE Group as follows: full (sole) investment company, holding company and share company. Based on the above facts and through an anatomy of managing issues of interest investment in the state enterprise group and the experience in succeeding in corporate governance in the Yeshu Group, we have analyzed the managing problem in the CAPE Group, there exist some key problems in enterprise: nominal investor, control by internal staff and simplification of stock ownership. Owing to the existing of these problems, management of enterprise group has been uncontrollable, and especially in the financial respect, therefore design of financial supervision becomes an urgent affairs.How to design financial supervision needs to indicate the following decided suggestions when designing the financial supervision: a/. targets for supervision; b/. principles of supervision; c/. principal part of supervision; d/. object of supervision; and e/. methods of supervision. The design of financial supervision is made up of (1). financial network managing system; (2). budget managing system; (3). currency managing system; (4). handlers prompting and restriction system. The above four has its own system, but is closed linked one another, and forms the contents of enterprise group financial supervision system. In conclusion, the design of financial supervision system over stock ownership by enterprise group will help establish normative and accord with corporation managing structure of modern enterprise system. The formation of restriction system for consignation and agency is essential to carry out tasks of inspiration, restriction and supervision, and to ensure the interests of funds provider, operator and stakeholder, and to guarantee the development of company in a standard, good order, and health and permanence manner.
Keywords/Search Tags:enterprise group, investment of interest, financial supervision
PDF Full Text Request
Related items