of
society Economy ,
Capital but also with the capital to expand operations further with the development of enterprise groups has become a modern enterprise operations important form of organization. As the further development of enterprise groups, leading to many companies within the Group
management properly, so that development of enterprise groups is constrained, especially in financial loss of control. Financial control that the managers of financial
system and financial targets for the development to regulate, monitor, review and evaluation corporate finance business, guarantee the achievement of financial targets for the management of . If the financial aspects of the group's lack of control, the core is difficult to ensure the implementation of the overall business strategy. Therefore, the effective financial control carried out on strengthening the management of enterprise groups, to enable enterprises to improve competitiveness of the Group have a great impact.
First, the implementation of financial control of the enterprise group need
Enterprise Group is a holding company and its subsidiaries constitute a multi-level economic organizations, which link the capital as it is With the rapid economic development resulting from
innovation form. Companies within the group in order to reduce transaction costs, improved efficiency in the allocation of resources to properly
application market transaction and administrative coordination of these two methods.
firm size is increasing, making centralized management of decentralized management gradually being replaced by enterprise groups although the transaction costs reduced, but so
control of the costs, and different corporate joint body has a multi-agency relationship, the absence of the owner of a subsidiary within the Group, a waste of resources and
business right out of control and some other issues more likely, which Group owner's interests are greatly affected. Therefore, to run the financial aspects of the integration of control, thus contributing to the enterprise group to become a true economic interests as a whole. Enterprise groups can run the financial control to reduce agency costs, and maintain the organization's strengths, so that the aggregate use of resources advantages into full play, thus achieving the Group's overall development strategy and objectives. Establish a reasonable and proper financial control
system , it will seriously affect the entire enterprise groups operating system optimization, and even business survival and development.
two,
China corporate financial control problems and the reasons
enterprise groups in China today has three closely linked with the problem of financial activities : distortion
Accounting Information , charging arbitrary branch of financial assets and the loss of the owner. Financial regulatory control of these three root causes of the problem,
tory burch outlet, it also reminds us that our business management where there was a weak financial controls.
cause of these problems are the following: ① not sound the upper level of the organization of financial monitoring mechanism ineffective, inadequate corporate governance structure,
investment environment, immature, resulting in state-owned the absence of investors, and weaken the control of shareholders to bring a serious internal control and the principal-agent problem: shareholders' meeting a mere formality; unreasonable, the lack of functional composition of the board of directors, the need to strengthen the professional independence and of; not yet achieved the status of the Supervisory Board, Board of Supervisors makes the play control is very limited: as a creditor
Bank Implementation less monitoring. Internal control of the gradual expansion of the operator misappropriation of investors' interests. ②
Financial Management there are more serious over the separation of powers, financial powers led to excessive fragmentation of the enterprise group within the group is not easy to achieve the best allocation of financial resources, the scale of enterprise groups play became a bubble, and a subsidiary of the parent company financial behavior monitoring more difficult. ③ need to improve the control system. Enterprise groups gradually increased the size of the organization, leading to the previous system of financial control and financial control system itself is not comprehensive, not the modern enterprise group needs are met, the lack of a reasonable business within the group decision-making body, decision-making process and appropriate internal control system,
internal audit is always a mere formality. ④ lack of or no effective implementation of performance appraisal, incentive system.
By the principal-agent theory we can see that the client is mainly used for incentive and restraint mechanisms to regulate and constrain an agent, appropriate incentives and performance evaluation is used to solve the principal-agent relationship between enterprise groups and multiple sound financial control of the necessary means. However, the performance evaluation of enterprise groups and incentive mechanism is still not perfect, the interests of the operators and the economic efficiency of enterprises is still not really linked together, the parent company of members of the business group managers lack the incentive and restrictive mechanism is reasonably practicable, so that the operators maximize the potential of severely affected.
as the organizational form of a gradual development of the Group, the diversified development mode of operation, organizational structure, the ED also flat and network development
trend , etc. The emergence of requirements across the enterprise group control should be strengthened. Group's mission is to build businesses gather resources to achieve integration and management synergies. Purpose of implementing the enterprise group is an important way to run reasonable and appropriate financial controls, which help to achieve the Group's internal financial goals, and the integration of enterprise groups in the formation of synergies,
tory burch outlet, optimal allocation of resources to enterprise groups, the overall interests of the enterprise to achieve maximization.
Third, China's Enterprise Group Financial Control response
we can begin to address the following aspects of our corporate financial control problems:
1, establish a sound financial control system. The establishment of sound financial control system is the basis for the reasonable operation of financial control. Our corporate governance structure should be based on the needs and characteristics of production and business activities to establish financial control system. First,
mbt shoes ireland, the formation of corporate financial management within the Group, to develop business in all sectors within the group of major economic decisions, such as investment guarantees, dividend distribution
policy and control of economic contracts signed, etc., and to develop business transceiver custody of property, materials, cash payments and cost criteria approved by the functional departments and management requirements. Second, can the use of combined general and specific authority authorized in the approved system. Here is a general mandate to require a company that general economic activity in the processing of the hierarchy of rights and conditions of approval, this requirement is usually defined in the enterprise among the Group's internal control system; that is specifically authorized by the provisions in a particular economic activity levels and rights when dealing with conditions of approval.
2, strengthen the financial control of behavior. Control refers to the group of funds controlled subsidiary of the parent company financial stock and flow. Enterprise group of funds equivalent to the Subsidiaries that most directly affect the survival and development of financial control is carried out capital controls. Implementation of capital controls would need to establish a group of financial settlement center. Group-based financial clearing house needs a unified control of the entire group of funds management, internal and external members unit for clearing operations, control the budget of each unit to monitor capital expenditures, and the remaining places within the inter-enterprise funds transfers, financial resources to fully leverage the Group's overall superiority, the aggregate financial resources to achieve synergies, and thus
protection Enterprise Group's debt and ability to pay, so that the Group's financial risk significantly reduced .
3, implementation of a comprehensive budget. Overall budget refers to the period of time in the future enterprise groups to achieve the quantitative description of program objectives, and down to every level of the subsidiary as a subsidiary of appraisal based on performance management activities to achieve the advanced control of a subsidiary of business. All business activities of the Group's business in the property to the overall budget, and this as the basis, the subsidiaries of the target and incentive constraints and other means of control integrated into one, creating a penetration into the production, management, marketing and financing various stages of financial control system.
overall budget is the main profit center of the target, the company's investment and production activities are all included in budget management. With the profit goals of the company's production and management operations guidelines, and corporate performance assessment. Therefore, enterprises should be based on different conditions and development goals, and provides a calculation of the indicators on the overall budget, which is the profit target. The overall budget but also in a group of companies with a system of budget management chain, goal setting, communication docking, the practice spread, and so on. Preparation process rules top-down bottom-up and up and down the joint. After review by the layers, and finally decided by top management,
tory burch outlet, and performance contracts signed.
On the Enterprise Group Financial Control
on
business Financial Group control
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