Research On Financial Management And Control Mode For State-Owned Investment Holding Enterprise Group

At different stages of economic development, the state-owned enterprise group will play different roles.Nanjing municipal reform of state-owned assets management system is currently in full swing.The purpose of the comprehensive reform of state-owned enterprises is to accelerate the pace of municipal state-owned enterprises into modern enterprise system,to establish a propulsion system for making the state capital open to social capital,and to improve risk prevention mechanism of state-owned enterprises. ZJH Group was born in 2012, also at the first round of Nanjing municipal state-owned enterprises’comprehensive reform, which integrates many high-quality property and equity with relevant industry background through two years’development. It’s a state-controlled investment holding enterprise Group.The parent company is regarded as the core of the enterprise group,and the parent company reached an unity development goal with its subsidiaries and also established mutual cooperation development strategies. Along with the improvement of Group’s shareholding structure, its assets are initially divided into five sections, which are financial investment section,financial services section, information technology investments section, venture capital section and investment industry sectionJudging from external supervision,the ’actual controller’ of ZJH Group, Nanjing State-owned Assets Supervision and Administration Commission(SASAC) also began to take supervison and management for corporate system, financial accounting specification, financial management and internal control system, significant financial matters,etc; On the perspective of the Group itself, in the process of trying to achieve overall financial synergies..financial control as an important link of achieving corporate strategic goal needs to make more adjustments and improved.The author conducted an research through questionnaires and telephone interviews, learned from staffs of financial sector and other business sectors about the status of financial management and control,including financial institution set up,financial functions,financial system, decision-making power vested in major economic issues, financial information management, financial risk control, capital arrangements, financial information management and other control-related. Combined with theoretical knowledge and practical understanding, a number of suggestions were put forward to the Group’s financial management and control system. Finally, the author divided the Group into wholly-owned subsidiaries, holdings and equity affiliates. From the perspective of property rights,clear financial relationships between the parent and subsidiaries once again. For those subsidiaries which in controllable range of risk management and information disclosure,the parent company should constraint rigidly about the financial risks,such as establishing a unified financial management system, a unified risk management strategy, a unified risk coping mechanisms, forming a unified financial management and control system; as an operating management of the group, the financial activities should be implemented flexibly, reflecting the flexibility under the rigid constraints of financial management. And for equity affiliates,their financial and non-financial information should be collected by the parent company, the parent company make financial analysis through these information to control financial risk. Generally speaking, the parent needs to ’Justified centralization, Orderly decentralization, Institutional authorization, Moderation of rights using’.The paper consists of six chapters,and is divided into three parts. The first two chapters constitute the first part.It introduces the background and the research significance of the topic, research objects and methods,research framework, and a systematic review of domestic and foreign literature.The second chapter describes the theoretical basis of relevant topics,including the concept of enterprise group, objectives and content of state-owned enterprises and state-owned enterprise reform, financial management and control, pros and cons of three financial management and control mode, etc.The third, fourth and fifth chapters constitute the second part,which is the core of the paper. The third chapter elaborates the basic financial situation of ZJH Group, introduces statistical findings of the survey,lists present position settings of parent company finance department, the job functions as well as the implementation of several measures of financial management and control, and finds four vulnerabilities of financial management and control,which are functions of the finance department of orientation bias, capital controls are not in place, the lack of effectiveness of financial information and internal audit functions missing.Chapter four presents a number of recommendations for the Group’s financial management and control, starting with the analysis of the external environment of the Group, and internal environmental analysis of financial management and control goals, applying the’flexible financial management’concept into the daily financial activities and striving to achieve ’firmness and flexibility’. Secondly, analysis each of the four loopholes, give some suggestions about the parent company’s financial management and control,also raise at a more detailed improved advice on the financial system, decision-making powers, financial risk prevention issues. Perspective with property relations,the author describes parent company financial relations with wholly owned, holdings and equity affiliates one by one. Based on a comprehensive study,the fifth chapter does summaries about performance evaluation and internal audit system,which protect the Group’s financial management and control.The third part is the sixth chapter. This section summarizes the basic conclusions of the article,proposes its practical significance and the value can be applied in prctice.At the same time,this section also explains conclusions’ limitation which impacted by corporate financial information confidentially.