The Research On The Control Mechanism Of Parent-subsidiary Companies Based On Two-stage Game

“THE Belt and Road” strategy provides opportunities for Chinese enterprises to integrate into the international market and enhance their international competitiveness,but at the same time,Chinese companies have also brought greater challenges.Therefore,it is more and more important for companies to strengthen their ability to control and establish an effective management and control mechanism.If the parent company of the Group imposes strict controls on its subsidiaries and intervenes,it may lead to a high degree of dependence on the subsidiaries and loss of the ability and enthusiasm for self-management.If it is completely free to the subsidiaries,it may cause the subsidiary to blindly pursue its own interests and affect the overall performance of the group.In the face of a complex and ever-changing market environment,how to choose the management and control model that suits itself and maintain steady growth in business performance has become an important research topic that companies urgently need to solve.This article begins with the relationship between the parent company and the parent company,and searches and combs the literature on the control methods,the contents of the control,the control and control modes,the controlling factors,the control mechanism,and the game of control of the parent company,providing a theoretical basis for the following research.Secondly,combining the characteristics of the parent company and its own,taking into account the influence of the external environment,this paper uses a multi-stage game approach to analyze the control mechanism of parent and subsidiary companies.With the objective of maximizing the group's interest,the parent company's different stages of value creation are analyzed in a game of classification,exploring different stages.The choice of management and control methods under the conditions of parent and subsidiary companies under different conditions.When the effectiveness of a subsidiary's value-creating behavior centered on the group's interests rises or falls,what kind of behavior the subsidiary company takes and how the parent company conducts centralized control or decentralized control will change.Thirdly,based on the analysis of management and control mechanism,we make assumptions based on the literature we have sorted out,design scales,issue and collect questionnaires,and empirically prove what factors affect the effectiveness of parental control.This article mainly discusses the influencing factors from the perspective of the subsidiary company.The parent company's control ability is affected by the external environment of the subsidiary company and the company's internal micro environment.The external environment,internal environment and other influencing factors are classified and hypotheses are made for empirical analysis.After arriving at the conclusion,cultural differences have no significant effect on management and control.Other factors such as the size of subsidiaries in the parent company ranking,parent company status,holding level,strategic consistency,degree of integration,technology transfer and complexity,etc.have a positive effect.The degree of centralization;the uncertainty of the level of subsidiary management and the external environment adversely affect the degree of centralization.Finally,discuss the correlation between the choice of control mode and the degree of control.The degree of control determines the choice of management and control mode.When the parent company has a high degree of control,it tends to adopt operational control;on the contrary,when the parent company has a low degree of control,it tends to adopt financial control;the degree of tightness of control is moderate and strategic Controlled or mixed control.