The External Heritage Of Family Business And Corporate Value

In order to ensure the success of the family business,the success of the choice of inheritance mode has a crucial impact.As the founder grows older,he chooses to inherit within the family,or introduces professional managers and trains and selects to select candidates.This is the choice problem that most domestic family businesses face in the past 10 years.In the research of this paper,based on the theory of system theory,principal-agent problem,enterprise life cycle and other theories,the US group is selected as a typical case of family inheritance,the establishment of its successor,the establishment of supervision and incentive mechanism,and the external inheritance of enterprises.The impact of value has been further analyzed.The analysis results of this paper show that the introduction of external inheritance by Midea Group is mainly played by the fierce market economy and the mature stage of the enterprise's life cycle.At the same time,professional managers have strong personal abilities and gradually get from the grassroots level.The founders valued it,and the second generation was more willing to start their own business and investment industry.There was no strong willingness to inherit.The above factors led the founders to transfer the management of the company to the professional managers.In order to prevent the possible agency problems in the professional manager's inheritance arrangement,Midea Group has designed a series of supervision-based incentive mechanisms: mainly through highly authorized business managers,high-paying returns,and the Group's overall listing to achieve non-tradable shares marketization.Initiate the partnership plan and other aspects to motivate professional managers and ordinary employees;and achieve supervision and balance of professional managers' power by clinching corporate control,introducing institutional investor supervision,transplanting cronies on the board of directors,and establishing a sound audit supervision system.The design of this supervisory-based incentive mechanism is the key to the success of the US professional managers.Then this paper analyzes the impact of external inheritance arrangements on the value of American group companies from the perspectives of performance indicators,market reaction,and consumer response.The results of financial analysis and non-financial analysis show that the external inheritance model of Midea Group is successful,and corporate performance has been Improvement,and has been highly recognized by investors and consumers,indicating that the external inheritance model has a positive effect on the development of the US group.Due to the influence of domestic traditional family culture concepts,the vast majority of domestic family enterprises will be biased towards family inheritance,but there may be insufficient children's ability and willingness to inherit.Therefore,the arrangement of the external inheritance process of Midea Group is for family businesses facing the dilemma of inheritance.It has a good reference,so this paper synthesizes the above analysis,promotes the successful inheritance process of Midea Group,and gives reference suggestions for family business inheritance arrangements.