The Empirical Study On The Influence Of Founder Management In Private Enterprises To Enterprise Performance

Private enterprises play a significant role in our country's economic development.Based on their own network relationship,the founders reduce transaction costs for enterprises,and acquire scarce resources at the same time,contributing to enhancing their competitiveness.In the early stage of enterprises,the founder of private enterprises as a provider of capital or technology,or as a pioneer of the market,devoted greatly to the rapid development of enterprises.In the process of the growing and developing in private enterprises,the founder management is very common.The so-called founder management means that when the enterprise was set up,the founder has taken up a key position of the enterprise,that is,the chairman or the CEO.As for the effect of founders' participation to enterprise performance is positive or negative,there are different views and understanding in existing literature.In view of the shortcomings of the existing research,this paper takes full account of the different managerial roles of founders,and conducts analysis on family companies and non-family companies respectively.In this paper,both the social network theory and resource-based theory were firstly used to analyze the founder's participation in the private enterprises.On this basis,The 657 companies in Shanghai and Shenzhen were chosen as a sample,then did empirical research based on data from 2013 to 2016.In the empirical test,firstly,I tested the influence of founder management to enterprise performance;secondly,I divided the key position founder occupied into different managerial roles,to inspected the difference among these managerial roles to enterprise performance;finally,I divided the chosen private listed companies into family companies and non-family companies and made a comparative analysis between the two types of companies' impact of founder management to enterprise performance.The empirical results show that:(1)in the present stage of private listed company,founder's participation in management will significantly reduce enterprise performance;(2)the founder,who serves as different managerial roles,caused different impact to enterprise performance,and the negative impact of CEO hosted by founder to enterprise performance is remarkable,while negative effect of founder served as chairman or chairman and CEO at the same time is weak;(3)the founder management has a significant negative impact to performance in non-family companies,but founder management brings positive influence to the family firm.The research has important theoretical significance for enriching the theory of corporate governance about private enterprises,and it is of practical significance for providing private enterprises with reference to choose managers rationally.