With the diversification of business, globalization, and the progress of the corporate group, there is a growing importance for governance of subsidiaries by the parent company. This paper analyzes the current state of the corporate group. The effect of the granting of parent company stock options to the executives of subsidiary companies is also examined empirically using propensity score matching. The empirical results show that the granting of parent company stock options to these executives led to a positive impact on company performance. This result suggests that in order to improve parent-subsidiary management organization issues, it is important to give subsidiaries incentives that are aimed at raising the performance of the whole group.