Corporation Financial Control Of A Number Of Issues

The group company that is fit for the development of productivity and the request of the Market Economy is an advanced form of enterprise organization. And the group company is an economic union co-organized by many enterprises and institution legal entities through the ways of property right connection, production cooperation and so on.With the deepening of our economic institutional reform, the group company has become an important form taken by the behavior subjects of our modern market economy for the reason that such an organizational structure can assemble tremendous social productivity and produce the organizational effects that can't be realized by the individual enterprise.But it is believed that there are many problems during the development of the group company, especially the management problems. And the financial control is most important among them. Yanpeijin, the famous economist, once said:"To solve the difficulties of enterprises, to improve the skills of leaders, to establish the scientific managerial system, financial control is the most important determinant."Many corporations look on financial control as the vital part and strengthen it continually to accelerate business success's in the world. Some other enterprises lose a lot and even go bankrupt just because of the neglect of financial control.The author hopes the research will offer some references to the financial control in our country theoretically and practically. There are five parts in the thesis. Part one the summary of the financial control of the group companyThis part expatiates on the concept and character of the finance control of the group company. The author points out that the group company is a vertical system of the parent company and subsidiaries of the group. The finance control of the group company comes from the ownership andthe corporation's management and focus on carrying out the financial target of the whole group company. Part two the choice of the financial control model of the group companyThis part is one of the important aspects in the thesis. The author will discuss three problems: the model of the financial control of the group company, the relevant considerate factors of choosing the different financial control model and the practical choice of the financial control in our country.Firstly, the author will discuss the three models of the financial control of the group company: the centralization model, the diapartment model and admixture model. Secondly, the author analyzes the factors that influence the choice of the financial control model. There are three factors: the different developing phases and tragedies; the important degree to the parent company and the controlling ability of the headquarters of the core company; the organizational structure of the core company. Thirdly, combining the practical conditions of our country, the author thinks we should adopt the relatively centralized financial control. On account of the scattering right too much, especially the lessons of the financial aspects that had been dispersed excessively. This makes the headquarters of the group has no right to manage the subsidiaries in the financial aspects. So it demonstrates in the following aspects: the subsidiaries manage their companies by themselves; the group has no group spirit; it is difficult to allocate the resources among the subsidiaries; the resources allocation is not reasonable and wastes a lot . Part three the Content of the finance control of the group companyThe finance control of the group company is to control the subsidiaries' investment, financing and dividend distribution.As the investor of the subsidiaries, the group company should set up theintention and basic rules of investment, establishes reasonable capital structure and adopts advisable policy of dividend distribution to assure the benefit of the parent company and subsidiaries of the group.Part four the financial policies controlThe author points out that the finan...