Study On The Relationship Between The Governance Structure And Growth Of Family Business

After the reform and opening up, the private economy obtains approval and begins to proper. The family enterprise, as the main body of private economy, plays a prominent role in alleviating the employment pressure and promoting china’s economic development, the sustained growth of family enterprise is of great significance to ensure the stable growth of our country’s economy. But for a long time, the contradiction between sustainable growth and governance structure of family enterprise is always to be a problem that puzzled many scholars: on the one hand, the "grow up" problems of family business are general, family enterprises’ life cycle are mostly short, enterprises once reached a certain scale, it is hard for them to continue to grow. Especially China is in the handover climax period of the second generation of authority gradually take the helm of the company, the internal and external factors of instability are more likely to touch the soft rib of the enterprise, triggering family enterprise’s survival crisis; on the other hand, the governance structure of family business has a lot of disadvantages, the excessive concentration of property rights is very effective while in the company’s start-up period, but when the company gradually grow up, need to add more social capital, it will restrict the absorptive capability of integrating social resources, hindering the growth of the firm. This paper through analysis and study show that the fundamental elements that restrict the family business growth lies in its governance structure whether can meet the demand of elements in different growth stage or not.At present, because the majority of scholars research the problem of corporate governance and growth separately, so it is difficult to grasp the internal mechanism between growth and governance structure of family business. Based on the defects of previous research, this paper will compare family business’ s dynamic process of growth with the evolution path of governance structure, match the enterprise’s growth obstacles with the governance structure defects, in order to provide ways to search the problems of family enterprise in each growth stage. The domestic research on relevant aspects is rare, and its foundation is weak, exploration of the relationship between family enterprise’s growth and governance structure clearly has a strong theoretical significance. At the same time, discussion of the relationship between the two aspects, also provide convenience for us to find ways to make up for the defects of family enterprise’s governance structure, give family enterprise some reasonable proposals for internal system reform, and has important practical significance to help many domestic small and micro family enterprises continued to grow and break through the fate of "the rich but three generations".This article consists of five parts: the first part describes the research background, purpose and significance of the thesis, briefly explain the overall structure frame and research method, let us have a general understanding of the overall structure and the logic of the text. The second part classifies and integrates the literature at home and abroad about the definition of family enterprise and family enterprise’s growth and governance structure, known of the past scholars’ research achievements and influential conclusion in the relevant aspects that will be convenient for us to understand and make preliminary judgment on the relevant problems, research based on professional theory will make the theoretical point deeper and more thorough. The third part mainly studies family enterprise’ operation mechanism and governance mode in each growth stage, analyses the characteristics, growth needs and main growth obstacles of family enterprise in each growth period, to explore the family business should be how to change the governance mode continuously in order to realize the stage leap. The fourth part is the case analysis, through empirical investigation and analysis of the representative of Chinese family enterprise, demonstrates the important influence and effect of property rights reform in the growth of family enterprise in our country, considering the property rights reform as the key factor to promote the governance structure evolution. At the same time, advocates regarding the professional manager’s authorization, supervision and encouragement as the second major governance problem to analysis and study. The fifth part come to the conclusion through the analysis and research, provide the reference for the decision-making of family business and put forward the future research direction of correlation theory on this basis.The innovation point of this article lies in :the perspective of the research is prospective, this article combines family enterprise’s growth problems and governance structure problems, through the analysis of the relationship between two aspects, discusses how to promote the evolution of governance structure to achieve sustained growth of family enterprise; the content of the research is scientific, this article from multidisciplinary perspective such as management science, economics and social science, analyses and researches the relationship between the governance structure and growth of family enterprise profoundly, rich in content, adequate in argument, novel in thesis, so as to reveal the important influence of governance structure to growth of family enterprise. The deficiency is: the final conclusion part of the article,the concrete countermeasure is not detailed enough, still lacks of pertinence; the variable selection of the model is relatively simple, the construction of the model is not rigorous,the deficiencies still remain to perfect.This paper will write with realistic, objective and scientific attitude, clear, simple and concise language, on the basis of previous research by means of combining induction and deduction, analysis and reasoning, theory elaboration and case analysis to discuss the relationship between governance structure and growth of family enterprise deeply, and through building econometric model to verify the relevant conclusions, so as to ascertain the family enterprise should be how to promote governance structure reform timely to realize the sustainable growth of their own.