Analysis On The Developmental Pattern Of The Family Corporations At Current Stage In China

With development of family corporations, many scholars have begun to put great emphasis on the research. In the opinions of most Chinese scholars, family corporations is inefficient, has no future and will surely be substituted by modern enterprise system, but it's only an image in theory and will do no good to the healthy growth of family corporations. A certain enterprise system should be related to the political, economic and culture environments of the society. The current problem is not the transform of the family corporations into the modern enterprise system. So we should concern more about how to select developmental patterns of Chinese family corporations in the different market economy environment of the new century.Therefore, in the paper, I summarize the basic theory of family corporations , such as definition and type. Then suggest developmental patterns that we can choose for Chinese family corporations at present based on the actual conditions of China in order to help the family corporationses which are in the periods of corporations undertaking and puzzlement of the growth in our country.The first part of my paper, On the basis of our country situation, I use for reference definition of family corporations from some abroad and internal scholars, and I summarize my definition and type of family corporations.The second part of my paper, discussed the related economic theory in family corporations, the property right theory and principal-agent theory are the basis in analyzing family corporation development in china. By combined the characters of Family Corporation in our country can provide heuristic advices for different development models in different stages.The third part of my paper, compared the setup and development in family corporations between America and China, pointed out the shortages in corporation culture, inheriting, property right theory identifying, political environment and the helpful meaning for the family corporation development in our country.The forth part of my paper, I summarize the develop situation of our family corporationses. For example, The develop of family corporations is rapid; It to be significant department of socialist market; The size of our family corporations is small and so on. the shortcoming of family corporations is the chief content of this part. The inner property right of the enterprise is obscure; Family corporations always employ relative of family as management and so on.The last part of my paper, According to the different development period, we divide family corporations of our country into two types: mini or middle family corporations in starting period; large family corporations in developing period. Mini or middle family corporations in starting period should choose family enterprise pattern, but we must perfect the tradition family enterprise pattern, in order to be good for development in the future. Opening the property right of family corporations, separating ownership and power of management are good for starting an enterprise and resisting risk. We should guide the large family corporations to modern enterprise pattern.