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Problems In Financial Control Reflected By China'S Enterprise Groups

2014/3/7 22:17:00 38

Enterprise Group Financial Control Financial Management

(1) the corporate governance structure is not standardized, and the owner is absent. 
 now many enterprise groups and < a href= "//www.sjfzxm.com/news/index_c.asp" > controlling subsidiaries < /a > in financial aspects. It is impossible to identify the ownership of assets and claims, let alone how their funds are invested and distributed. In the financial control of enterprise group, the parent company regards the subsidiary company as an ATM without cost. When there is a financial crisis and a business crisis, it violated the bank's credit by violating a huge guarantee for the company. Because most of the parent companies of state owned enterprise groups are wholly state-owned companies, the actual absence of the owners and the ineffective supervision cause serious financial control among the insiders. 
 (two) financial control is concentrated in the post event, lacking the ex < a href= "//www.sjfzxm.com/news/index_c.asp" > budget < /a > /p >.
 according to the experience of group management and control for 17 years, the vision consulting has investigated many group budgeting systems in China, and found that it has not been given due attention. At present, some groups have not really established and improved the financial budget management system. The budget is often only superficial and weak, paying more attention to the profit at the end of the year. Although many groups have budgeted, they have not effectively monitored the implementation process of the budget. What is more serious is that some enterprise groups have not set up special budget management institutions. In addition, from the group practice analysis, there is a serious separation and disconnection between financial objectives and financial budgets. Even though many groups have some good financial objectives, they have made some related financial budgets. They seem to have advanced nature on the surface. However, due to the poor management foundation of enterprise groups, their budgets are not feasible. It has caused serious disconnection between financial objectives and financial budgets. 
 (three) group < a href= "//www.sjfzxm.com/news/index_c.asp" > internal fund < /a > decentralized operation, low efficiency /p >
 the dispersion of funds of many enterprise groups has not played its due effect. On the one hand, there is a large number of funds idle and precipitation problems. On the other hand, they can not afford to adjust the shortage of subsidiary funds. There is a serious lack of loans among the members of some enterprise groups. For example: in 1999, Fengfeng mining group of Hebei province did not effectively control the flow of funds because of the decentralization of funds, resulting in serious shortage of group funds, and the normal production and operation activities were on the verge of being unable to continue the dangerous situation. 
 (four) the property right structure and capital structure are not clear > /strong > /p >
 most of China's enterprise groups are not products of market mechanism, so there is a problem of capital control and single structure in financial control. Most enterprise groups are state-owned enterprise groups, with a single capital structure and a large proportion of state ownership. They can not fully introduce the market mechanism. In addition, the formation of China's enterprise groups is very special. Many groups are formed on the basis of administrative allocation. When state-owned assets are allocated to group companies, no scientific and reasonable asset clearance is implemented, resulting in group decision makers unable to know all the liabilities, owners' equity and assets of all business groups. For a long time, because of the blurring of property rights, the loss of assets is serious and can not be effectively controlled. 
 (five) the enterprise group pursues multiple objectives, and the financial control is weakened. 
 the goal of state-owned enterprises is not only to maximize profits or maximize enterprises, but also to have functions of the government, such as expanding employment and maintaining financial order. Many enterprise groups are formed under the influence of the government. This kind of group with "good match and bad match" has laid a lot of hidden trouble for the development of enterprises in the future. Leaders of enterprise groups generally prefer to make enterprises bigger rather than stronger. Because in the senior management of all levels of the enterprise group, especially the managers have considerable control power, this is possible for the senior managers of all levels to make improper consumption. This kind of consumption turns the productive resources of the company into non productive resources. Each of us has its own interests, ignoring the overall development of the group. It has damaged the effective implementation of financial control. 
 (six) the control efficiency of financial personnel is low (/strong > ).
 field consultation suggests that the parent company lacks supervision over the financial personnel of its subsidiaries, which may lead to the failure of the subsidiary's financial personnel to act in accordance with the intention of the parent company. There is a serious phenomenon of engaging in corrupt practices blindly. In the process of financial supervision and control and daily accounting work, the accounting supervisor of a parent company often loses its independence and principle. As for some managers and subsidiaries, the financial fraud is jointly implemented by the managers and subsidiaries, and the partnership with the subsidiary companies for personal gain seriously damages the interests of the parent company. The outstanding performance is: a few business managers spanfer their rights by means of legal or illegal means, embezzle company assets and their profits, and seek various benefits.