Research, Financial Control System Based On Free Cash Flow Of The Enterprise Group

Enterprise groups can be described in different ways. In the side of finance, an enterprise group is a complicated system of cash circulation. The cash flow is the "blood" that keeps the system running normally. Healthy and smoothly-running "blood" plays a significant role in the development of finance of enterprise groups. In China, unfortunately, most enterprise groups are more or less out of control of their cash flow management. Cash chains have broken and financial scandals have erupted again and again, which make these jewelry enterprise groups tumble-down or belly-up. Actually, it exposes a serious fact that the control in cash flow and financial risk is weak. This thesis commences from the analysis of financial control in enterprise groups in the present, discusses the inimitable virtue of the "free cash flow" as a principal part of the financial control in enterprise groups, then establishes a financial control system of enterprise groups based on free cash flow. This thesis emphasizes the theoretical level and also concerns the operating level. According to the study criterion of controlling, the thesis studies the target, subject, object, instrumentality and other correlative conceptions of controlling, trying to establish an effective and step-up financial control system of enterprise groups.