Business Owner's Wife Involved?Financial Slack And Its Economic Consequences

With the development of China's non-public economy,the role of private enterprises in China's overall economic progress has become increasingly prominent,and family business as an important part of private enterprises,has become an important force cannot be ignored.There are more and more researches on family business both at home and abroad.He Xiaogang et al have analyzed the data of family business in our country,The results show that most of the family enterprises in our country adopt the model of family co-governance,that is,Members involved in corporate control and management decision-making power,joint control of the enterprise's development strategy and business decision-making.And in view of the rapid economic and social development?cultural opening and progress,women's self-awareness gradually awakened,women gradually debut in the economic,rights and political arena.A growing number of female family members represented by the wives of business owners have been involved in the governance or management of family businesses,which has gradually become the important force of the family business to realize the foundation.Therefore,this paper takes the wife of the business owner is involved in the control of the family business and the decision-making power of the business,namely,“family business owner's wife involved” as the starting point,based on the female risk avoidance hypothesis,trying to explore whether family businesses prefer a higher degree of financial slack in the context of a owner's wife involved in business governance,and further in-depth discussion of the family business financial slack policy will bring what economic consequences.The content of this paper includes several parts.The first part is introduction,including the research background,the theoretical significance and the practical significance,the basic content of research,the research frame and the innovative points of this research.The second part is the definition of concepts and literature review.First of all,the concept of family business,owner's wife involved and financial relaxation were defined,followed by combing the family business governance and financial relaxation of the existing research literature and the relevant literature were reviewed.The third part of this paper is the theoretical analysis and hypothesizing.At first,the relevant theoretical basis for supporting this study is outlined.Including the related research of family business governance and the theory of financial slack.Then,based on the theoretical analysis above and from hypothesis.The fourth part of this paper is the design for the empirical research,including the selection of data,the definition of the variables and the construction of the mathematical model.The fifth part of this paper is the analysis of the empirical results,including descriptive statistics,correlation analysis,and multiple regression analysis and robustness test.The last part of this paper is the conclusion and suggestion including the conclusion from this research,the suggestions on relevant policy,the limitations of relative research and the direction of future research.Based on the study of all listed family enterprises in China from 2003 to 2015,this paper mainly draws the following conclusions from empirical analysis:First,the “owner's wife involved” variables are significantly positively correlated with the three variables of the firm's financial slack level,suggesting that the when owner's wife involved in governance,the family business is more likely to hold large amounts of cash and maintain a lower level of debt levels to reduce the risks of;Secondly,Family business financial slack policy as a whole with the company's financial performance was inverted U-shaped non-linear relationship,indicating that the family business should focus on grasping the degree of financial slack.Further research and analysis show that the employer's wife plays a more significant role in the level of corporate financial laxity when she works in the corporate management.The innovation point of this paper focused on the following aspects.First,there are more and more researches on family business in China,but there is still a lack of research on the relationship between family members and how they affect family business.In the family members of all relationships constitute the most important inside is the relationship between husband and wife,there have been studies on the family business of husband and wife in foreign countries.China's research in this area is very scarce.This paper introduces the “family business owner's wife involved” as the independent variables,to a certain extent,enriched the related research of the family relation and female family members.Second,China's current research on the company's financial theory did not give too much attention from the financial slack,the relevant research is also slightly thin.And most of the existing literatures examine the relationship between the general female executives and the corporate financial policies.This paper studies the relationship between the role of entrepreneurial wife and financial relaxation in the family-owned enterprises and further studies on its possible economic consequences.