The Problems And Improvements Of Highway Group Corporation Capital Settlement Center In China

As a large country, we had made a rapid development at this stage, although the formation of the network layout of across the east and the west, from north to south, highway in the western city still showing the sparse state due to the backward state. In the gradual process of development, China’s highway construction funds from a single government funding into a mixed financing system which includes local budget funds, bond funds, local lending, domestic bank loans, stocks and bonds issuance, transfer of operation rights. It is the guarantee of stable operation to manage effectively the huge highway "capital pool" which formed by huge construction funds and charges. With the deepening of western development and economy, the highway in our country also has a broad development space. It is helpful to enhance capital efficiency with measures to improve the highway group corporation capital settlement center; also it is use for reference to the financial management.In this paper, we will study the existing problems of highway group corporation capital settlement center. First, this paper analyze the literature at home and abroad by literature research method, summarizing the theoretical basis of group corporation capital settlement center which include internal control theory, the financial control theory and information asymmetry theory. Meanwhile, this paper also summarizes the related research results about enterprise group capital management at home and aboard, including the enterprise group capital management mode, problems and countermeasures of enterprise group, also making a summary of research by domestic scholars about highway group corporation capital settlement center. Second, we use comparative analysis method to analyze three kinds of capital management mode-total control over revenue and expenditure mode, transferring reserve fund mode and capital settlement center mode. In the foundation of current situation of highway enterprise group, capital settlement center mode has been adopted. And then, we describe the basic situation of highway group corporation capital settlement center, introducing its function and operation, and pointing out the exist problems in the highway group corporation capital settlement center, such as lack of leader’s support from subsidiary, imperfect organization structure, low operating efficiency and unsound assessment system. We continue to analyze the reasons consist of constraints of current national laws and policies, administrative intervention leads to functions limited and lack of professional capital management system. Finally, from the internal control, corporate governance structure and employment mechanism these three aspects, we put forward related measures to guarantee the capital settlement center operate smoothly and efficiently. From the corporate governance structure, it’s better to set up a capital management committee which composed of leaders from main functional departments, thus forming a situation of cooperation and supervision by each department. As to internal control, we must establish a strict approval mechanism to control the size of loan. The capital settlement center should adopt full-budgeting approach to control the amount of loan. Sounding the internal control system is helpful to avoid capital concentration risk. With establishment of ERP management system, enterprise information system can combine to commercial bank information system, improving the efficiency of capital settlement. At the same time, we can use the performance prism to improve the assessment system, making a comprehensive and objective assessment to capital settlement center. As for employment mechanism, we can start from the following three aspects:first set up a high-quality talent mechanism, to ensure the competition following the principle of openness, fairness, impartiality. And then we need to enhance training to talent with sending capital operation personnel to study in enterprises and universities in a regular or irregular basis, improving the efficiency of capital operation. Third, it is very important to strengthen professional ethics to curb corruption to create a well-management environment. At last, we should build a reasonable system of rewards and punishments which is helpful to stimulate the enthusiasm of employees.