Research On Family Business Governance

Abstract: Family business has been rapid growth under the prime time of Chinesereform, from discrimination to being recognized, the small workshops to taking shape,the slow growth to the rapid rising, fragile and short-term to stabilization and lasting, andgradually grow into a major force in the national economy and become an importantcontributor to China’s economic development Family business plays an irreplaceablerole in increasing social wealth, spur economic growth， promote employment, etc.,which have become an important component of China’s socialist market economy.However, most of family businesses still exhibit the features of closed, conservative,backward and non-standard in the internal governance, therefore the continuingdevelopment of family business has repeatedly attracted widespread attention inacademiaThis paper deep explored family business governance mechanisms by reviewing thedomestic and abroad theoretical studies, using standard analysis and qualitative analysismethods, studying typical cases as complementation and exerting the professionalknowledge of economics and management. The thesis following the logic ideas of"theoretical basis, case discussions, countermeasure research," included4parts: from thetheoretical basis of the internal governance of the family business, family businesssituation and problems of internal governance analysis, to build our family businessgovernance mechanisms (specific to dispute of Game’s control for example),measures ofimprovement within family firms systematically. Firstly, the domestic and abroadrelevant research literatures were organized and the theoretical basis of the family’s internal governance mechanisms was analyzed comprehensively, to lead researchperspective of this article. Secondly, the thesis outlined the development and features offamily business, analyzed the status of the internal management of the family businessdeeply and summarized internal governance problem of family business summary asshown in " Chinese Family Business Report " of the2010National Sample Surveylaunched in the private sector. What’s more, we described governance issues from theperspective of management and discussed the issues to build the governance mechanismby referencing the classic case of the dispute of Game’s management control. Finally,according to the specific issues described in the text, we built the family businessstrategies combining with economic theory system by straightening out the relation ofproperty right, improving internal governance mechanisms， strengthening internalgovernance mechanisms.