A Study on the influence of Subsidiary Characteristics on Parental Control

Subsidiary characteristics are important factors in Group's control, but the existing research on this issue is lacking in empirical test. Through questionnaire survey, this paper examines the impact on the group control of the company size, business sophistication and business strategy of the subsidiary. The findings are as follows: the larger the subsidiaries, the more the parent company should exercise formal control; the greater the differentiation in subsidiary's business strategy, the more the parent should lower the degree of control, and the more the use of informal control. The relationship between subsidiary business maturity and the group control has not been verified.