Research On Optimization Of Parent Company's Control Mode Over Subsidiarie

With the rapid economic and social development of China’s enterprise conglomeration more and more in depth,the development of China’s enterprise has entered the group operation mode,in the course of its development and growth,how to optimize the control mode of the parent-child company and integrate the resources of the parent-child company has become the core issue to be considered by many enterprises.From the perspective of city investment enterprises,the expansion of assets and the development of enterprise conglomeration have increased the complexity of the relationship between the parent and subsidiary companies of city investment enterprises.How to optimize the control degree and mode of the parent-subsidiary company to make it better play its advantage is an important part of the adjustment of the governance structure of the city investment company.Based on this,the article takes QH City Investment Group Company as a case,and conducts a survey visit and questionnaire collection,and makes an empirical analysis of the management degree and model of the parent and subsidiary of City Investment Enterprise.This thesis takes QH City Investment Group as an example and conducts field research and questionnaire survey on the macro background of China’s increasing governance of local government investment and financing platform.In interviews with group executives and front-line employees,this study initially identifies the current state of the group and the problems and causes of its parent-subsidiary control model.Later,the researchers conducted a questionnaire survey of more than 90 executives and employees,and the empirical analysis showed that the parent company’s degree of control over the subsidiary had a significant positive effect on the performance of the subsidiary,and the higher the parent’s attention allocation,the more positive the impact.Our research has three contributions to the literature.The first is to deepen the investment and financing platform enterprise parent and subsidiary control mode and degree of positive role understanding.It is found that the degree of control of the parent company over the subsidiaries will positively affect the performance of the subsidiaries and expand the research on the consequences of the control of the parent company.The second is to open the "black box" which affects the performance of the subsidiaries by the degree of control.This thesis illustrates that the increase in the attention allocation of the parent company enhances the investment of the parent company in various resources of the subsidiary.Emphasizing on the development of the ability of the subsidiaries,thus reinforcing the positive effect of the parent’s degree of control over the subsidiaries on the performance of the subsidiaries,New insights are added to the research on the influence mechanism of regulatory degree in academia.Finally,this study combines qualitative research with quantitative research.Taking QH City Investment Group as an example,To explore the existing problems and improvement strategies of the control mode and degree of their parent and subsidiary companies.It can provide reference for the improvement of the control mode of parent-subsidiary of other similar enterprise groups.