Power Allocation and Investment Efficiency of Parent-Subsidiary Company<br/>—Empirical Analysis Based on the Perspective of Subdivision of Power

Abstract

Taking Shanghai and Shenzhen A-share non-financial listed companies in 2009 and 2019 as samples, from the perspective of financial rights and personnel rights, this paper makes an empirical study on the relationship between their allocation between parent and subsidiary and the overall investment efficiency of listed companies and their subsidiaries, and further analyzes the moderating effect of the two on the above two relationships. The research shows that: 1) in the current stage, the concentration of financial rights improves the investment efficiency of the parent-subsidiary company; 2) the concentration of the power over personnel has an inverted U-shaped relationship with investment efficiency; 3) from the moderating effect of the two, the concentration of financial power flattens the inverted U-shaped relationship between the concentration of personnel power and investment efficiency; 4) the concentration of personnel power amplifies the promoting effect of financial power concentration on investment efficiency, but this effect is not clear at the low level of personnel power concentration. The research of this paper is helpful to provide more concrete and operational reference and suggestions for the management and control of enterprise groups.

Analisis Penerapan Sentralisasi Fungsi Akuntansi dan Keuangan dalam Perusahaan Holding: Studi Kasus PT Semen Indonesia (Persero) Tbk

“…Departemen Finance Policy & Excellence sendiri salah satu tugasnya adalah memberikan panduan dan menjaga standarisasi aktifitas usaha di Holding dan AP serta monitoring pekerjaan yang dilakukan oleh Business Controller di masing-masing AP. Sedangkan tugas secara garis besar daripada Business Controller adalah menjalankan fungsi Akuntansi & Keuangan di masing-masing AP Menurut (Zhou & Wong, 2021) dalam risetnya yang berjudul "Power Allocation and Investment Efficiency of Parent-Subsidiary Company" menyatakan bahwa disarankan agar memusatkan kekuatan finansial di tingkat perusahaan induk dapat membantu meningkatkan proses manajemen proyek, menghindari pemborosan sumber daya di tingkat anak perusahaan, dan mencapai pengelolaan sumber daya keuangan yang terpadu. Manfaat implemetasi inisiatif sentralisasi fungsi akuntansi dan keuangan adalah optimalisasi treasury dimana kendali penuh Cash Management ada di tangan Holding.…”

The Correlation Between Double Taxation Conventions, Tax Compliance, and Tax Evasion. Empirical Evidence From Oecd Countries

“…A very important aspect of the double taxation problem is represented by the permanent establishment concept both in the digital age on an enterprise and on a subsidiary level (Dulevski, 2021), the connections established between the economic outcomes and double taxation conventions with a special focused upon Developing African Countries (Efobi & Adejuno, 2021), meanwhile, a very sensible aspect in the literature is represented by the fixed establishment as a subsidiary (Lipniewicz, 2021). A specific analysis must be made from the management perspective regarding the relationship between subsidiary and headquarters relations (Rodrigues et al, 2021), followed by the determination of power between the parent-subsidiary investment and allocation efficiency (Zhou & Wong, 2021) and finalizing with the importance of the transfer prices legislation regarding tax administration and tax policy (Satande et al, 2021).…”