Research On The Optimization Of The Arrangements For Management Of Fuyao Glass Industry Group CO.,LTD From The Perspective Of Specialized Assets

Management arrangement remains to be one of the mainly issuses in family firms' succession.As the hottest spot in recent corporate finance and governance study,this issue has been gaining more and more attetions.One major reason of such attraction is that management is normally considered the best way to protect family specialized assets,and these specialized assets are the main factors contributing to family firms' out-performance and value-decrease during succsion.The way how management arranged should be depended on family specialized assets,in other words,the impacts specialized assets have on corporate value determines family firm's management arrangement.Fuyao has been selected out for the out-standing performance of specialized asessts.Several literature on family firm governance have been reviewed at the beginning of the paper,and then,combined with the principal-agent theory,specialized assets theory and institutional backgrounds,I digged into the delimma Fuyao faces on management.And in this way,the impacts specialized assets have on corporate value has been clarified.This paper suggests that large amount of specialized assests exist in Fuyao group.And these assets contribute a lot to Fuyao's corporate value.Corporate performance and Share price are two main factors affected.The negligence of specialized assests is the main factor contributing to Fuyao' delimma in management arrangement.Quite a few suggestions have been given in the closing.Firstly,family control suppose to be the most appropriate arrangement for the current Fuyao group;Secondly,more attention should be paid to the low stake ratio so that issues like hostile takeover could be defended.Thirdly,a fine encouragement is quite essential as Fuyao is going way stronger.Last but not least,alerts should be stayed on the transition of specialized assets.This paper is contributing to family firm governance literature.