Economic Consequences And Risk Prevention Of The Succession Of Professional Managers In Family Business Inheritance

With the continuous development of the times,family enterprises as the backbone of China's private economy,its inheritance has become the focus of Chinese scholars and the public.The realization of smooth inheritance is of great significance to the survival and development of family businesses.However,at present,the inheritance of family businesses in China faces many bottlenecks.Under the background of the restriction of birth policy and the absence of any willingness,the traditional “father-bearing father” is difficult to maintain;the value loss brought by the succession of the family descendants makes the intergenerational inheritance worse.At this time,professional managers,as the reserve force of the family's talents,entered the field of family inheritance with the advantage of their professional ability.However,the succession of professional managers will be accompanied by a series of moral and conceptual risks,whom may become the aggressors of corporate value and become a major hidden danger in inheritance.Therefore,the succession of professional managers as an important way to solve the existing inheritance dilemma,design a reasonable mechanism to prevent the risks it may bring,and maximize the ability of professional managers to become the core proposition of fulfilling the burden of enterprise commitment.In this context,this paper starts with the risk of the succession of professional managers,combined with principal-agent theory,specific asset theory and corporate governance theory to explore the motivations,risks and economic consequences of choosing professional managers.And find the corresponding prevention mechanism against the existing risks.Select the case of the succession of the Media Group professional managers,analyze the motivation and economic consequences of choosing the professional manager's succession,find the established inheritance mechanism to explain the economic consequences,and prove the risk prevention function of the mechanism.The research in this paper finds:(1)In the choice of inheritance mode,the succession of family managers to choose professional managers is affected by family,individual,company and industry,but the main motivation is that the family descendants will not be strong.(2)Through the analysis of the status quo of Chinese family business inheritance,it is found that the family business inheritance in China generally has the lack of planning,the subsequent generation is weakened by any will,the succession of professional managers is less,and the succession value of the descendants is reduced.(3)The case analysis of Midea Group shows that the succession of professional managers as a path can effectively solve the problem of unwillingness and loss of value of the descendants of inheritance,and can be circumvented through the design of a series of risk prevention systems(including internal training and corporate governance).These systems can also lead to positive market reactions and improved long-term financial performance.The research of this paper puts forward specific suggestions and operational methods from the selection of family business inheritance mode and mechanism design,which provides a path and reference for the later family business inheritance,and makes for the family business in China to achieve long-term success and protect family wealth.