Network economy and centralized management of finance in business groups

Abstract

The weakness of traditional financial management is obvious increasingly in network economy,such as management means backward comparatively,budget control system imperfect,capital control ineffective,which will restrict the optimization of resource allocation.Correspondingly,network technique provides guarantee for business groups to establish centralized management model in finance.i.e.business groups can adapt to the requirement of network economic development and realize the reform,innovation and maximum of total profit via transferring the model of financial management from decentralized to centralized,strengthening the functions of supervising agency,centralized management of capital and limitation of right to financial personnel.