Within The Family Business Governance Structure And Performance Relationship

The family business is playing more and more important roles in the development of China economy and society. And it has already become the most activate and the most powerful force in developing economy and new economy growing point. In a sense, to concern China family business is to concern China economy future. For this reason, the paper takes the internal governance of family business of China as the research and analysis target. It takes family businesses in 2007 as the sample, establishing linear regression and analyzing the relativity and regression between corporate internal governance structures and firm performance. We not only try to study the correlation between the performance and cash flow rights the family control mode and the reward of senior managers, but also we analyze the cooperating with variable.The results shows that positive and significant correlation exists between cash flow rights, the family strength, the reward of senior managers and governance efficiency, negative correlation exists between the efficiency and family part-time as board chairman and general manager and family directors, family direct controlling the firm makes good effect on the efficiency, Based on the empirical evidences, this paper provides some advice on improving Chinese family holding listed companies' performance.