Parent-subsidiary Corporation Control: The Practices of Chinese Central SOEs

Rapid progress of Chinese central state-owned enterprises (SOEs) has been challenged to the validity of parent-subsidiary corporation control. Previous researches center on the construction of a fundamental theoretic foundation for the issue. Possessing exceptional features from western countries' enterprise groups, Chinese central SOEs have their own traits in the field. The author collected internal control information of 141 Chinese central SOEs from their official network stations up to the end of 2008. The research studied the positive experiences and the undesirable deficiencies in their management practices from different aspects, such as governance structure, organizational installation, comprehensive administration and operational management etc. The author proposed that Chinese central SOEs should establish strategy-oriented control mode and arrange more effective control measures according to more in-depth understanding into the whole enterprise group.