Case Study On The Corporate Governance Mode Of "Mom-and-Popstore"

In the capital market of our country,family enterprises account for a large proportion,and the private economy with family enterprises as the mainstay contributes greatly to China's economic development.According to the analysis of the family members' family types,the most important kinship relationship in family business in China is the husband-and-wife relationship.The importance of "mom-and-pop store" family business in China's economic development is self-evident.Therefore,the "mom-and-pop store" enterprise has gradually become an important direction for family business research,and the detailed research on "mom-and-pop store" enterprises has received more attention.With the optimization of the market environment and the improvement of the capital market,more and more "mom-and-pop store" companies have chosen to hire professional institutions to adjust their operations in order to expand capital in the modern capital market.The expansion of the scale of enterprises has a strong demand for capital,which makes the couples in the capital market show a significant incremental trend while having a significant stock.It is undeniable that the "mom-and-pop store" model had many advantages that other types of enterprises did not have at the beginning of its establishment,but with the expansion of the company's scale,its inherent congenital shortcomings were also revealed.Especially after the listing,the problems of the "mom-and-pop store" corporate governance model are more prominent.With the rapid development of China's Internet,Dangdang,which is the main book sales company,came into being and became the entrepreneurial model of Internet companies at the same time.In 2010,the e-commerce industry entered a stage of rapid development.Dangdang was listed on the NYSE,and the market value of 2.3 billion made it a hot unicorn enterprise in China.However,Dangdang's business performance and development path were not satisfactory.The effect of the transition to a comprehensive department store e-commerce was not satisfactory.After the privatization delisting,it was eventually acquired by the Tianhai Investment Agreement.Dangdang's development process reflects the obvious decline in operating performance,which can be described as the transition from prosperity to decline.This is inextricably linked with the management and control problems under Dangdang's "mom-and-pop store" corporate governance structure.Compared with other types of family businesses,the "mom-and-pop store" type enterprises of the ties are more prominent in the governance risks,which deserve our attention and discussion.Combining the above backgrounds,this paper takes Dangdang as a research case and takes the “mom-and-pop store” corporate governance model as the research object,and discusses the practical issues of the “mom-and-pop store” corporate governance model.Based on the concept and content of family business in corporate governance,this paper analyzes the general characteristics of the governance model for the family business of “mother and wife” Based on the concept and content of family business in corporate governance,this paper analyzes the general characteristics of the governance model for the family business of " mom-and-pop store".based on the theory of separation of powers,social emotional wealth theory and housekeeping theory.This paper introduces the basic situation of Dangdang Network and briefly analyses its B2 C business model at the case analysis part.It systematically reviews the whole business process of Dangdang Network from the first generation of business platforms listed in the United States,privatization delisting to Tianhai Investment Agreement acquisition.Then this paper concludes the characteristics of Dangdang's "mom-and-pop store" governance model: husband and wife are both founders,dual identity with managers,high concentration of ownership and control rights,imbalance of husband and wife roles caused by power allocation,and "dual-core operation" of internal control environment and information communication.This paper compares the performance and change of Dangdang's operating performance,the declining trend of market share and capital market,and the relatively conservative investment strategy by comparing the performance of the board of directors,operating financial indicators,investment efficiency and market effect with the relevant indicators of the same industry.Then it analyses the influence of Dangdang's "mom-and-pop store" corporate governance model on the company's operating performance,reveals the problems existing in the internal control and management decision-making of the "mom-and-pop store" corporate governance model: excessive centralization of control leads to business limitations,role conflicts caused by dual-core operation,lack of professional managers caused by family leadership,and inconsistency of opinions on management and decision-making.According to these above specific problems,this paper gives corresponding improvement suggestions and countermeasures: adjusting the husband and wife's ownership structure,further standardizing and elaborating the division of responsibilities,introducing professional managers and strengthening information communication.It provides reference for the further improvement of its internal control and operation management for the same type of enterprises.