Analysis of the Management Control System in Holding Companies :

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  • 持株会社本社の統治力としての求心力とは何か
  • 持株会社本社の統治力としての求心力とは何か : その基盤としてのMCSの考察
  • モチカブ ガイシャ ホンシャ ノ トウチリョク ト シテ ノ キュウシンリョク トワ ナニ カ : ソノ キバン ト シテ ノ MCS ノ コウサツ
  • ――その基盤としてのMCSの考察――
  • Its Integrative Functions in Corporate Governance

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Abstract

Significant numbers of companies have failed to improve their performance after transforming into holding company systems. One of its possible reasons is that the holding company does not exert its management control over its subsidiaries strongly enough to restrict their autonomies that may lead to the directions deviated from the holding company's aim. In this article, based on case studies, we propose how the holding company can reinforce its integrative functions to balance against the decentralization. Our examination of corporate groups in pure holding company systems indicates that a majority of these groups are either groups whose subsidiaries' business is so diversified that their individual decision-makings are more efficient for performance, groups that need to restructure their organizations through M&A etc., or global corporates whose businesses are divided by area/state. The pure holding company of such a corporate group should require a management control system that allows the holding company to bring the corporate resources, such as personnel, materiel, capital, and information, under its own control as needed. Case studies of Aeon Co. Ltd. and Seven & I Holdings indicate that an excess decentralization of the corporate governance would possibly have a negative impact on their performances. We discuss several aspects of the management strategies that could reduce those harmful effects.

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