Study On The Performance Evaluation Of The Parent-Subsidiary Corporation’s Financial Management And Control

In today ’s increasingly fierce international competitiveness, the cultivation anddevelopment of enterprise groups is one of the national mainstream trend.For theparent-subsidiary oriented enterprises groups, how the parent company take effectivefinancial management and control in order to enhance the management level and corecompetitiveness of the corporations, has becomes the focus of attention at home andabroad.This paper makes a combination of literature and empirical research, finishingthe comprehensive domestic and international research and the theory related tofinancial management and control firstly, summing up the conceptual framework forfinancial management and control of Parent-Subsidiary corporations. At the same time,we introduce four aspects of financial management and control of Parent-Subsidiarycorporations, including the capital management and control, the investment andfinancing management and control, the overall budget management and control, andthe financial risk management and control. We study on the meaning, function,patternand significance. Then, this paper selects84listed corporations implementingfinancial management and control. According to the annual financial statements andinternal control evaluation report, we make research of these Parent-Subsidiarycorporations to evaluate the performance,using financial indicators analysis andfactor analysis. Finally, basing on the empirical results, we make comparative analysiswith the performance score to evaluate the financial management and control of thelisted Parent-Subsidiary corporations in different industries. And we make the eachyear trend analysis of the listed Parent-Subsidiary corporations in the same industryaccording to performance scores.The empirical results show that: After the implementation of financialmanagement and control, not all sample corporations’ performance turn out a upwardtrend. To a certain extent, the research shows that not all the sample corporationsachieve the desired goals after the implementation of financial management andcontrol. The Parent-Subsidiary corporations in different industries need to combinatethe characteristics of the industry as well asn their internal and external environment to take effective financial management and control model,to optimize the allocationof group resources and achieve the strategic objectives of the maximumperformance.