Research on Parent-subsidiary Enterprise Finance Control Pattern Based on Hierarchy System

Abstract

The parent-subsidiary enterprise finance control pattern appears to be the continual dynamical equilibrium between the centralization and the decentralization,but in essence it is.the financial control intrinsic mechanism match in the dynamic process.The modern parent-subsidiary enterprise finance control featuring the department hierarchy is characterized by the mechanism in which the non-authority control mechanism replace the authority control mechanism,a basic form of control.Moreover,such a phenomenon should be looked as the remedying mechanism to replace the authority control with the non-authority control when the former is insufficient due to the failure of the department hierarchy and therefore is an improvement on the authority control.,which can determine the effectiveness of the financial control.