| Many family firms are set up and developed, some family firms have come the time of the second's ownership to manage. Family based on it's vital status in family firm, so it is the first object of analysis at the corporate governance mechanism. Blood, relative and marriage relationship of family, person's status is steady, effect of the "parent" and so on, these reasons let family firms governance mechanism have some characters, for example, the enforcement of decision is quick, but it may brings about decision risks. This paper regards family business in our country, which rose since the end of the seventies and the beginning of the eighties in the 20th century.This paper studys the characters and questions of the decision and incentive and constraint mechanism in the inter family firm. We regard that there are two reasons generate the Corporate governance mechanism of family firms, one is the separation between ownership and managerial right; the other is specialization. So the entrust-agent relation was produced due to the factors mentioned above; moreover because of the informational asymmetry, the firm need corporate governance. We think the objects of the governance should include two parts: manager and post people. Company make the decision right in allocating and control through building the governance structure and the person's responsibility; people are incentive by compensation policy and their action can be constrained through budge and financial control institution and so on. All in all, firm inter governance is the system construction of the decision and incentive and constraint mechanism.This paper start with the meaning and background of this topic, then summaries of the relevant theories about the corporate governance and analying the mechanism of the decision and incentive and constraint mechanism, finally it is a real case of family firm. This paper has theoretical foundation and some cases. This paper's research method is main case analysis approach. |
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