Rerearch On The Impact Of Private Equity Investment On Executive Excitation Of Family Businesses

With the expansion of the size of the private equity market in China and the expansion of the new three board market after 2013,China's IPO project has been restarted in 2014,providing a good opportunity for private equity to enter the enterprises.Family businesses as an important driving force of China's private economy,their development can not be ignored.In fact,many private equity agencies have joined family businesses,which have a certain impact on family businesses' behavior decisions.In the academic world,many scholars have studied the related issues in the field of private equity,and some scholars pay attention to the management and inheritance of family enterprises.The number of scholars combining private equity funds and family enterprises is relatively less,and the study of private equity is more concerned with the research on compensation incentive of senior executives in family enterprises is also very less.Therefore,for the family enterprise,which has the closed characteristics,how the private equity intervention affects the salary of the family business executives,and what this effect will bring to the corporate governance and sustainable development of the family business,is a worth thinking topic.Therefore,this paper,from the perspective of private equity supervision,takes into account the unique attributes of family firms,and analyzes the effect of private equity involvement on the excitation of executive compensation andhow it produces the effect of private equity intervention on the incentive of private equity and family business executives.Firstly,based on the supervisory function hypothesis and social emotional wealth theory,this paper reviews the literature of family business executives,the relationship of private equity investment and executive incentives,and studies the private equity investment to family business executives on the basis of the sample data of the 349 newly listed companies listed in Shanghai Stock Exchange and Shenzhen Stock Exchange from 2014 to 2016.In this paper,the following conclusions are drawn as this: firstly,private equity involved in family enterprises can play a positive incentive for family business executives' compensation;in addition,from the perspective of family enterprises,the private equity proportion effectively alleviates the negative impact of family ownership on executive's compensation incentive.