Research On Double Control Of Family Business Based On NVC Lighting Case

Family business in the world wide and has a long history,for the world’s economic development and make a great contribution.Family business because of the unique characteristics of the enterprise,making it with the state-owned enterprises governance path is different.Family business development to a certain extent,there will always be the transfer of control or inheritance,but the founder of the entrepreneurial ownership of the psychological ownership is very common,they often think that they are the owner of the enterprise,professional managers and external investors are economic profit and capital providers,if the professional managers or external investors to grasp the actual control of the enterprise,then easily lead to between the founder and professional managers or founder and investor between the control of contention.For example,in recent years,the control of Wahaha control,Alibaba control contention,Gome control of competition,etc.,are the founder of the corporate control is threatened when triggered.In the past,scholars have often analyzed equity changes from equity control,but in some cases we have found that equity control is not the only factor that affects the change in control,especially in families with distinctive characteristics,We will always find that social capital control in the control of the process of change has a role can not be ignored.This article selected NVC lighting as a case study,NVC is a typical family business,its founder Wu Chang jiang single-handedly created the development of enterprises,but in 2005 to 2014,Wu was expelled three times from his own business.The first time in 2005 was the founder of the expulsion of partners,the second was in 2012 was expelled by institutional investors,the third was in 2014 was expelled by major shareholders.After the first two were expelled from the enterprise,Wu Chang jiang use of their own construction of equity capital and social capital dual control network,and back to the enterprise,which in the history of enterprise management is also a rare phenomenon.Based on the theoretical framework of double capital control,this paper analyzes the path of dual capital control in family business,analyzes how dual capital control plays a role and analyzes the consequences of competition control under dual capital control.The case analysis shows that the financing constraints,the entry of external investors,the founder’s authority is the fundamental motive for the competition of the family business.After the division of the founders is divided,the social capital plays a key role in the process of controlling the change.Under the influence of the family business control transfer will be greatly hampered at the same time under the dual control can easily lead to the actual control of enterprises to pursue the control of private interest,the interests of the invasion of the behavior of enterprises emptied.The main contents of this article are as follows: The first chapter is the introduction,introduces the research background,research significance,research methods and innovation.The second chapter is the literature review of the article,introduces the characteristics of family business and its control,social capital and dual control,family business and social capital.The third chapter is about the cause of NVC lighting control and its case introduction.The fourth chapter analyzes the case of NVC lighting control contention,introduces the influence of dual capital in the process of control of contention,and the controllable private interests of the actual controller of the enterprise under double capital and its economic consequences.Chapter 5 is the conclusion,policy recommendations and outlook.The conclusion is that the financing of family business is difficult,and the authority of the founder is the cause of the control of the family business.The ownership capital control is the key to the control of the ownership.The founder of the family business is more adept at using the double capital control,Control to a certain extent,can supplement or even replace the equity capital control;dual control can easily lead to entrepreneurs to pursue control of private interests,on the one hand we encourage entrepreneurs to use dual control to improve business management efficiency,reduce business management costs,on the other hand also vigilance and supervise the use of dual control of entrepreneurs to take advantage of the interests of occupation and emptying behavior.Through the case study and analysis,in theory,this paper provides a new research perspective for the growth of family business.In practice,it also provides a lesson for the management of family business,avoids the similar case of control for the enterprise,Society has a negative impact.At the same time,we hope that the relevant departments can improve the construction of laws and regulations,provide an effective supervision mechanism for corporate governance,and eliminate the phenomenon that the founders of similar listed family enterprises use double control interests to encroach on and empt the enterprises and harm the interests of small and medium shareholders.