Research On The Family Rationality Of Chinese Listed Family Business Succession

According to a survey data, which shows that at present China privateenterprises will confront enterprises succession, if it can survive or perish, dependson successfully solvent of the event. The family enterprise system is a collection offamily system and business system, which depends on each other. In the operatingmechanism under family system, companies seek to fulfill family targets, whereasfamily companies seek to fulfill business targets in the operating mechanism underbusiness system. Then, in the operating mechanism under the family enterprisesystem, family companies seek to fulfill the balance between family and businesstargets. However, the special nature of family company decides the special of familycompany succession, which is not only company succession but also familysuccession. During family company succession, what we could analyze by new viewis that family company behavior is different from ever or obviously rational or not.By this means, companies could find out some recessive behaviors and makethemselves envisage their pursuant family rational phenomenon during theirsuccession. According to family company targets, they can weigh family rationalphenomenon efficiently and balance family system and business system, which couldkeep family company healthy and sustainable development.In this article, which has6departments, it aims to study family enterprises showobvious family rationality in the event of succession, we analyze this phenomenonfrom theory and empirical aspects. The first department is introduction theory. Thearticle, where the writer elaborate research background and significance firstly,propose research content and method and elaborates research mentality、research construction and so on. The second department is literature review. This departmentprimarily summarizes and reviews domestic and overseas scholar research on familyinheritance、family targets、family rationalization and compensation stickiness. Thethird department is the theory analysis of family rationalization. Writer primarilyunfold research from family rationality、 family rational function and familyrationality of family inheritance three sides. The forth department is the design ofresearch. Writer primarily make two assumptions between financing behavior orcompensation stickiness and family rationality, where writer carries through variabledesign by means of modeling、two regression analysis of logistic and multipleregression analysis. According to the requirement of article research, writer confirmsthe article research sample source. The fifth department is demonstration analysis.According to the sample data and research method, this article makes statisticaldescription、relative analysis and regression analysis. The sixth department concludesthe results of article research.The conclusion of this paper is: listed family enterprises show the obviousphenomenon of Family Rationality in the event of succession. We analyze it fromtwo aspects, operating activities and financing activities. In addition, this paperdraws two conclusions by empirical research and analysis:(1) Before and during inheritance, the financing behavior of listed family company issignificantly different between family company not to inherit and family company toinherit, whose financing behavior is inactive.(2) During inheritance, salary of thesenior executives, who are in listed family companies, has stickiness character. Yet,before and after the inheritance, the salary doesn’t have stickiness character. The twovariables about financing inactive behavior and compensation stickiness explain the management behavior and the financing behavior of family businesses well, and thusexplain the family rationality phenomenon of family business succession.