Open AccessImplementation of Centralized Administration and Management of Funds in Enterprise Groups
Author(s) -
Song Xia
Publication year - 2021
Publication title -
proceedings of business and economic studies
Language(s) - English
Resource type - Journals
eISSN - 2209-265X
pISSN - 2209-2641
DOI - 10.26689/pbes.v4i4.2407
Subject(s) - finance , business , control (management) , resource allocation , investment management , administration (probate law) , capital (architecture) , investment (military) , global assets under management , process (computing) , management fee , open end fund , economics , computer science , institutional investor , politics , corporate governance , management , archaeology , market liquidity , political science , law , market economy , history , operating system
Enterprise groups are characterized by multiple levels of enterprises with large scales of assets and complex business models. In the process of administration and management of funds, there are often some problems, such as unreasonable internal funds allocation, high financing costs, and flawed funds control. Centralized fund management is a tool for the overall allocation of intra-group funds and the coordinated management of group investment and financing. It can optimize the resource allocation of enterprise groups and reduce financing costs as well as capital risks. By selecting centralized fund management, establishing control and early warning system, as well as building information system and other steps, enterprise groups can better implement centralized fund management and improve their capital control.