Corporate Governance And Corporate Performance In The Process Of Succession Of Family Business Professional Managers

The data shows that in the next 5-10 years,nearly 70% of the family businesses in China will face succession and will soon enter the high-incidence period of handover.Due to the low willingness of the family to take over the second generation and the small selectivity of internal heirs,more and more family business owners have to entrust the enterprise to professional managers.Previous studies have confirmed that professional managers take over the family business will lead to outstanding principal-agent problems,and even control competition,resulting in a decline in corporate performance and failure.How to smoothly handle professional managers and achieve a smooth transition has become an urgent problem for family businesses in China.This paper mainly uses principal-agent theory and modern housekeeping theory to analyze the impact of family business professional managers on the performance of enterprises,and uses the family-owned enterprises listed in China's A-shares as a model to descriptive statistics on the succession of family managers.Record the short-term market response and long-term performance changes of professional managers who take over the family business.Afterwards,it is reviewed that the failure of Gome's professional managers to take over and the successful completion of the scepter transfer of the US group,combing the inheritance process and selecting the motivation of the professional managers to take over,analyzing the corporate financial performance and market after the family business professional managers take over.Performance changes and evaluation of succession results.Further,the case comparison is carried out,and the reasons for the different succession effects are summarized from the four aspects of enterprise management system foundation,supervision and incentive mechanism,successor source and inheritance process control,and the influence path of succession effect is proposed.Finally,the paper concludes that the succession of family business professional managers is a holistic,dynamic,and complex system process that cannot be achieved overnight.Family business owners should formulate inheritance plans as early as possible according to the actual situation of enterprises,train appropriate successors,and ease the reconfiguration of control rights in the process of transfer of sceptans through gradual process control,improvement of corporate governance system foundation,and strengthening of supervision and incentive mechanisms.The resulting conflicts of interest ensure a smooth transition of family businesses and achieve a win-win situation for family interests and corporate values.It is expected that it will have certain guiding significance for improving the internal governance of family enterprises in China and improving the performance of enterprises through the optimization of governance structure,and also provide some reference for the follow-up of family business.