Enterprise Groups In China's Financial Monitoring

The business group is a kind of legal person united-corporations basing on the advanced development of modern enterprises. In the meanwhile, it is the inevitable results of large-scale socialized production and market economy development. The group plays a key role in our country's economy construction. But the management levels lags behind, especially the financial supervision and control. The group cannot realize the superiority of resources conformity and managerial collaboration effect. The financial supervision and control of the group is receiving increasing attention in the theoretical, practical and government circle.This paper analyzes the present situation of financial supervision and control in Chinese groups, and then puts forward some suggestions to improve the financial supervision and control through standardization and case study. According to studying frames, the paper is divided into five parts; the main content is as the followings:Firstly, with the analysis on the meaning and current situation of the group, the paper points out that the capital/equity linkage between the parent company and its subsidiaries is the direction of the group. From the particularity of the group, the paper points out the meaning of the group's financial supervision and control, and shows the monitoring features and the basic principles of the financial supervision from the control executive, control object, control objective and control policies.Secondly, from the core of the property rights of the corporation-financial control rights, the paper discusses the financial supervision and control model. There are three models: centralization, decentralization, centralization and decentralization with accountability. The paper talks about the relevant considerate factors of choosing the different financial supervision and control model. Considering the practical conditions of our group, the text points out that our state group should adopt the third model and should set up the basic system of financial supervision and control from the control organization and control mechanisms.Thirdly, combining the corporate governance theory with financial control theory, the paper sets up the control organization system, and points out the multilevel control executive. The control organization system is divided into four levels: the first level is the governance structure of the parent company; the second level is the financial...