Research On The Influence Of Family Culture On LY's Corporategovernance

According to Douglas C.north,an American economist,institutions can be divided into formal and informal ones.Informal rules are culture.In the vast majority of small and medium-sized family businesses in China,influenced by family culture,family culture plays a leading role in the business,and becomes the mainstream values guiding all aspects of business management.In small and medium-sized family businesses in China,the characteristics of family culture are particularly obvious: big parents dominate everything,there are differences between relatives and strangers,the family firmly holds two powers,cronyism and so on.These characteristics can clearly and sufficiently solve the governance problems such as ownership of rights,collective action and enterprise development direction in family business.From this point of view,corporate governance under the influence of family culture is an executable and effective model for small and medium-sized family businesses in China.It is an inevitable result under the influence of family culture that small and medium-sized family enterprises choose this governance mode.With the improvement of the external economic environment,the scale of enterprises is gradually expanding,the business scope is expanding,the number of employees is increasing,the effectiveness of family culture governance model is insufficient,and the progress and follow-up of enterprises are weak.The new situation has a great impact on the development of family business,and the reform of family culture governance is imperative.From the perspective of traditional family culture,this paper deeply analyzes the current situation of family business governance in China,and takes Yunnan ly metal company as an example to explore the current situation and difficulties of small and medium-sized family business governance in China,and summarizes targeted improvement measures and suggestions.