Research On Parental Altruistic Behavior In The Intergenerational Inheritance Of Family Business Founders

As the first wave of Chinese family business succession arriving,the result and development prospect of the succession have become a hot issue in the theoretical as well as practical fields.Intergenerational succession is a challenge faced by many Chinese family entrepreneurs.Previous studies have shown that many family businesses would confront fluctuation during this inheritance,and there are precedents for unexpected failure of enterprises management and losing control of business.Due to the influence of Confucianism,the family businesses in East Asia are more likely to be succeeded by the family members.Therefore,the parental altruism is embedded during the succession,making the power transfer more complicated.Then,what economic consequences would the Chinese family-owned businesses take after the succession? What are the performances of the parental altruism in succession? Does the parental altruism help to resist the fluctuations in succession? How can we avoid or prevent the risks that may arise during the family business succession? This paper tries to answer these questions.This paper starts with the second-generation succession of family business,which attracts much attention in recent years,and summarizes the related literature.And it also studies the issues based on the Agency Theory,Parental Altruistic Behavior Theory,Specific Asset Theory,Social Emotional Wealth Theory,and the mode of family business intergenerational inheritance and the intergenerational inheritance status of family enterprises in listed companies.First,from the three perspectives of market response,equity structure and financial index,this paper will study the economic consequences of the family business succession to the listed company through a small sample.Second,using the three-tier mode to analyze and evaluate the parental altruism of the New Hope Liuhe Group to demonstrate whether the parental altruism behavior in the family business succession is beneficial to reduce the fluctuations.Third,summarize the recommendations for preventing and reducing the risk of intergenerational succession,and put forward the research prospects of the paper.This paper theoretically enriches the data of economic consequences of intergenerational succession in family business.It analyzes the influences of parental altruistic behavior in intergenerational succession,providing information for similar research;the systemic analysis of New Hope enterprise succession will help domestic family businesses to learn and set it into practice.The succession of family business in China is still in the exploratory stage.Both the data selection and the evaluation of the succession results are subject to the late start of the first generation family business.Therefore,there are limitations in the choice of cases,and the conclusions of the study may be affected.Due to the insufficient information of disclosure of family business and the limited number of successful cases available for research,it is inevitable that there will be biases in the analysis of the impact of altruistic behavior in family succession,and further research and argumentation is needed.