Research On Professional Corporate Governance Mode And Inheritance Effect Based On Midea Group Case Study

Succession plays an important role in sustainable development of family business.However,it is to choose the mode of traditional succession or the professional management model that has become the common problem for the Chinese family firms,especially in the next five to ten years.The author uses the method of single case study and combines with theoretical analysis to finish the thesis.Based on the contract theory and the life cycle theory,the author chooses Midea Group,which is the leading enterprise of white household appliances and has chosen the professional management model in family succession,as the research object,and then study the choice of Chinese family business succession and effects.The research finds that Midea Group's inheriting model selection is affected by the external environment,the life cycle of enterprise,and the internal expansion.Moreover,the outstanding leadership of professional managers and the second generation lack of succession willingness also leads the firms to choose the professional management model.Midea Group designs the corporate governance for avoiding risk:design successor selection system,perfect the credibility mechanism among the members of the family firm,realize the diversity of equity rights to keep balance in the family firm and strengthen the professional manager incentive mechanism,etc.From the perspective of financial and non-financial indicators,we focus on the effect of professional management model.We finds that the Midea Group introduced the professional management model brings a positive impact and a bright future.The study speaks volume for the effectiveness of the professional management model.Finally,this thesis summarizes the case study of Midea Group,proposes suggestions to improve the professional management model in the family business,and provides experiences and references for other family firms in China.