Research On The Economic Consequences Of Family Business Intergenerational Inheritances

Since Chinese reform and opening up,family-owned businesses have become more and more prosperous.After more than 40 years of development,most of the founders of family businesses are in their ancient and are facing the problem of handovers.But inheritance is not easy.With the background that business owners prefer to have their family members take over,it has become a hot research topic whether the second generation of a family can take over the ring and prosperous career initiated by their fathers.This paper adopts the method of case study,selects the listed family enterprise Country Garden,which has entered the inheritance period,as the case study object,combines the method of the founder of the intergenerational inheritance to exit the business field and the source of the successor,and explores the process of the intergenerational inheritance of Country Garden.This paper analyzes the economic consequences of such inheritance path arrangement on enterprises.This paper argues that intergenerational inheritance is the consolidation and transmission of the founder’s special assets and the reconstruction of the successor’s special assets.The three mechanisms of "cultivation activities","institutional arrangements" and "cross-generational entrepreneurship" can consolidate the founder’s special assets in the enterprise.Internally,the founder’s special assets can also be passed on to achieve the purpose of reconstructing the successor’s special assets and reduce the decline in corporate performance caused by the founder’s exit from the company.This paper finds that:(1)The founder’s gradual exit is conducive to the solidification and transmission of special assets.(2)The reconstruction of the special assets of the second-generation successors of the family is the key to the success of inheritance.(3)The introduction of external forces through inheritance can alleviate the impact of the founder’s exit on the enterprise.Based on the above conclusions,this paper recommends that family businesses that are about to enter the inheritance period or are still in the inheritance period:(1)Inheritance needs to determine the direction and planning path in advance.(2)The family business can choose the inheritance method based on family inheritance and professionalization supplemented according to the actual situation.(3)Cross-generational entrepreneurship provides sufficient buffer time for the change of the old and new management teams of the family business.It is hoped that the research on the intergenerational inheritance of Country Garden in this paper can have certain reference significance for the selection of the mode and path design mechanism of the intergenerational inheritance of family enterprises.