A Study On The Corporate Governance And Growth Of Family Firms In China

Since the reform and opening up,Chinese private family firms have developed quickly,which play a more and more significant role in the economy and society.But they still face with the conflicts between family structure of corporate governance and business growth after more than twenty years developed,which embody the following two aspects.First,most of the family firms can not achieve sustainable growth easily and their lifecycle is short-term.Family firms will confront growth bottleneck when they grow to a certain scale;Second,high concentration of property rights unilateral governance structure in the start-up stage is an efficient management structure,but the effective governance structure can not meet demand in the growth stage.Instead it will block enterprises to absorb and integrate social capital.The dissertation is divided into four parts.Chapter 1 is the theme,research purpose and the significance,then section 2 is the framework of thesis and research method.The second chapter is related to the concept of family businesses,the corporate governance and growth of family structure home and abroad and related literature review.The third chapter is the operation analysis of governance structure and growth of family business. The method is mainly adopted with theoretical analysis to study the growth of the Chinese family business model,growth constraints,as well as the characteristics of governance structure on the stage of development and explore the modes of governance structure evolution.Chapter 4 is the case study of Huiyuan Company,which analyzes the problems of corporate governance structure Huiyuan Juice are facing.It verifies that the governance structure of classical family can not meet the needs of entering to the growth stage.The highly concentrated ownership structure,as well as a unified decision-making power and supervisory power,make it difficult to achieve diversification of property rights and hinder the further growth of family businesses.Property fights is not only an important foundation for business growth,but also a decisive factor for the evolution of corporate governance structure During the research,methods of case analysis and comparative study ate adopted. Combined with case analysis,by the analysis of the three dimensions(the ownership latitude,family latitude and management latitude) of governance structure in all stages of business growth,the research finds that corporate governance structure is a key factor to promote firm growth and in the long term the diversification of property rights is an inevitable choice.