Study Of Listed Group's Mode Of Controlling Subsidiaries

With the continuous deepening of China's market-oriented economy and flourishing development of the capital markets, a large number of listed group companies have become the backbone in boosting the growth of the national economy. So far, there have been many studies on parent-company management but a few on the management and control of subsidiaries. The Parent-subsidiary relationship is the central link of relationship within the group, and the management and control of subsidiaries is, or should be, the core issue of top management. Given that many domestic group companies were incorporated and developed subjecting to the fast-changing economic pattern, there were some shortcomings against the group companies in terms of organizational system and operating principles owing to the influential factors such as controlling ratio of state-owned shares, defects in development of socialist economic system and limitations by traditional planned economy. For a listed group, it is essential to select an appropriate mode of controlling subsidiaries compatible with the capital market requirements, to build a strong management and control system, to manage effectively the subsidiaries and enhance the group's soft strength for an optimized synergistic effect. This article thus attempts to provide guidance for study on the management practice.Chapter 1 is the introduction of this article, describing the research background, purpose and significance, methods and contents, as well as the contributions and limitations; in Chapter 2, the relevant theoretical basis of the management and control of the subsidiary is described; in Chapter 3, a listed group, Yibin Tianyuan, is taken as an example, to introduce its mechanism, strength, means and highlights from the company profile, major business, strategic development goal, corporation culture and organizational structure; the case study on management of its subsidiaries is presented in Chapter 4; the optimization suggestions for control of its subsidiaries are proposed in Chapter 5 from the aspects of orientation of the headquarter, adjustment of the strategic and operational objectives, organization structure, human resources, investment, financing, and information management; Chapter 6 lists the summary and prospect of the study.Based on the job cases in Tianyuan Group, the present status and existing problems of this Group in controlling its subsidiaries were analyzed, and an effective solution was proposed to optimize its internal management and control. The author hereby intends to contribute to the management and control standardization of Tianyuan Group, thus enhancing the management efficiency and strategic development.By integrating the literature review, case study and standardized research methods in the study, the opinions and conclusions were fully analyzed. And, a compound management and control mechanism based on strategic management was proposed to establish a perfect management system encompassing strategies, investment, finance, HR, information and marketing. This could help to realize normal operating activities, define the responsibilities of subsidiaries with a performance assessment of the top management, limit the range of decision-making at group level, and set up an information-sharing platform across the headquarter and subsidiaries. The research results hereto could be taken as a theoretical reference and guidance for domestic listed groups in managing and controlling their subsidiaries.