Research On The Intergenerational Transition And Its Performance Of Family Firm

Family firm is the main form of private enterprises in our country,plays an important role in the economy and social life.Recently,most of the first group of entrepreneurs have reached the retirement age.The intergenerational transition goes to a peak.A successful succession not only determines the ups and downs of the enterprise.However,there are lots of family firm fail due to succession lack of proper planning.Therefore,this paper takes a single firm as a case study,and combines the theories of social emotional wealth,authority legitimacy and social capital to discuss the influence and path of inheritance of family firms on performance,so as to propose the enlightenment of planning the inheritance.This paper takes J.S.Machine as the case,and selects its quarterly data from January 2002 to September 2019 as the sample to explore the influence of inheritance on performance and its inheritance path.First,determines the inheritance process and specific time node.With the process view,dividing the transition process into four stages: Participation,Co-management,Take-over,Fathers Exit.Then,taking Tobin Q and ROA as index and conducting a regression analysis on the quarterly data to measure the impact of each stage on enterprise performance.Furthermore,to learn how inheritance affects the performance with authority and social capital.The findings are as follows :(1)The stage of Participation has no significant influence on enterprise performance.At this time,the successor is receiving training in the assistant position,which cannot have a direct impact on the corporate strategy.(2)The stage of j Co-management has a significant negative impact on enterprise performance.Based on the theory of social emotional wealth and the theory of authority legitimacy,the successor establishes authority by means of strategic transformation,which leads to the decline of enterprise performance.At the same time,parental altruism exacerbated the decline.(3)The stage of Take-over as well as Fathers Exit have significant positive effects on enterprise performance.Based on the theory of Authority Legitimacy and the theory of Social Capital,the successor completes the establishment of authority and the inheritance of social capital during the succession period,so that the successor can successfully complete the inheritance.This research has the following contributions: First,it pays attention to the transfer of management rights and control rights in the succession of family businesses.According to the involvement of successors in the business operation,divides the intergenerational succession into four stages,which improves the succession theory of family firms.Second,it considers the influence of recessive factors on the inheritance with the authority and social capital,which provides a new way of thinking for the family business in the transition period.