Research Of The Impact Of Financial Sharing Model On The Parent Company Working Capital Management

With the rapid development of the economy,enterprises are constantly opening new subsidiaries to expand the scale of their operations and broaden the scope of their business,and most of them are developing in the direction of diversification and conglomeration.For these conglomerates,the only way to occupy a favorable position in the industry is to rationalize the use and allocation of limited resources from the perspective of the whole group and improve the efficiency of the use of various capitals.At the same time,working capital,as an important part of maintaining the daily operation of the enterprise,directly affects the overall operation of the enterprise.Therefore,how to improve working capital management from the perspective of the whole group has become a key concern in financial management.For this reason,the financial sharing model has become the first choice of many group companies.By building a financial sharing center and unifying the management platform,system and approval process of various types of working capital,the financial sharing model enables the parent company to improve the centralized control of working capital.In this paper,we selects ZG Group,a leading company in the automotive industry,as a case study.ZG Group introduced the financial sharing concept in 2018 and established a financial sharing center in that year.As of 2022,ZG Group’s financial sharing model has entered a mature stage and is significantly representative of the industry.In terms of research methodology,the rooted theory approach is applied,which is characterized by not presupposing results and possibilities,but using small sample studies to construct a new theory or model.The impact of the financial sharing model on working capital management is not only reflected in the financial indicators but also in the daily operation and management methods and processes,so the rooting theory approach can be used to dig deeper into the impact mechanism.The research of this paper includes the following aspects: i.Sorting out and analyzing the development process and strategic positioning of ZG Group’s financial sharing model,and exploring the steps of the construction of the enterprise financial sharing center.ii.II.Using the method of rooting theory,the content of interviews and internal training materials of relevant personnel of the case company are coded at three levels,and finally the influence mechanism of the financial sharing model on the working capital management of the parent company is derived.Third,based on the impact mechanism model derived from Zagan’s theory,the effect and level of working capital management of the parent company under the financial sharing model were analyzed,mainly in three aspects: organizational process transformation,working capital utilization efficiency and compliance.The final conclusion of the study is as follows: the financial sharing model has a positive influence on improving the working capital management level of the parent company,and its influence mechanism is mainly to realize the digitalization and standardization of working capital management through organizational process improvement,thus improving the utilization rate of the enterprise’s working capital,reducing the financial management risks of the enterprise,and improving the safety of working capital;therefore,for large group enterprises,the introduction of the financial sharing model Therefore,the introduction of the financial sharing model is one of the best solutions for large groups to improve the working capital management of their parent company.