Research On Corporate Governance And Development Path Of Family Business From The Perspective Of Family Rationality

From the perspective of the society, if there is merely the difference of the control ownership, then no difference exists between family business and non-family business. Due to the interference of the family factor, family business can take the long-term interests of the whole family as its development objective, starting from the family rationality, making difference from the public business on management behavior and operating mechanism. Only if defining family business from this perspective, can we make it into a research unit of great value. Family control is only a necessary condition rather the whole, instead, family rationality actually reflects the essential difference of family business. Therefore, in this thesis, the author gives a definition on family business that family business refers to enterprises owned wholly or held above the critical of the ownership and control by one or more families, operated and supervised by the authority or head of the family, with the family rationality, namely, the whole honors, interests and stable development of the family, as the highest value orientation, and also with handing down this power one generation by another as potential aims. This definition combines the dominant dimension of family control with recessive dimension of family rationality, and highly summarizes the definition of operability and theory on family business.Family business governance is to solve two fundamental problems about enterprise control distribution and enterprise developing objective determination. From the perspective of family rationality, this thesis constructs a mode of factors in family corporate governance structure. In view of internal, the basic conditions determining corporate governance structure are family resource ability, family culture and vision, enterprise scale and developing phases, business type and characteristics. On the other side, the external causes are rules from outer environment (including the relevant policies from capital market, property right market, manager market and taxation) and cultural tradition of economic society. If family business enjoys strong resource ability and comparatively small enterprise scale, besides it is in the beginning period and its business entails no high technology of the trade, then the family business will tend to centralize the control over its ownership and operating control. However, family business will tend to release this control on certain conditions with the maturity of capital market and property right market and improvement of professional manager market.. Under certain pressure from outer market, there will be wide competition on family rationality among family members or between family and non-family members with different value orientations. The outcome of this game will lead the family business to develop along the path of enterprise clustering and enterprise grouping. If the family business engages in the trade with low threshold of technology and knowledge, low demand of relation resource and financial capital, and simple trade mode, its development will be like cells doubling and accumulating, one into two, two into four, so on and so forth. Finally, it might well form a enterprise clustering of relevant products and service. On the contrary, enterprises will, with the original family business as their core, gradually evolved into an enterprise group based on social relation net.It is not only family business objectives but also aims for social development to prolong family business life, support its rational transformation, and ease the frustration of shutdown, suspense, merger, and transformation during its delisting process, and avoid waste of whole society wealth, and maintain the sustainable development of family business.