Research On The Investment Decision Reform And Performance Of Family Enterprises Under The Background Of Intergenerational Inheritance

In recent years,family businesses have played an increasingly important role in the development of China’s socialist market economy,and in recent years,the proportion of family businesses in China’s private enterprises has also increased year by year.Founders need to go through a long period of development when starting a family business,but eventually the control of the business will be transferred to a new successor.Therefore,the issue of intergenerational inheritance is a problem that every family business needs to face.Successors:Former founders generally strive to cultivate their successors,enabling them to take charge of themselves and make the company grow better and better.If there is a problem with inheritance,it will affect the development of family businesses,so founders are always cautious about intergenerational inheritance.Investment activity is one of the three major activities for enterprises to create value.The investment decision of an enterprise is crucial for the enterprise.Through investment decision-making,it can enhance the vitality of the enterprise,explore new profit growth points,and even affect the development direction of the enterprise.Therefore,this article focuses on the research of investment decision-making changes and performance made by family businesses in the context of intergenerational inheritance.This article takes Yaoji Technology as an example to study how it carries out investment decision-making changes in the context of intergenerational inheritance,focusing on analyzing changes in investment direction before and after intergenerational inheritance,changes in investment decision-making before and after inheritance,and how research performance will change through investment decision-making changes.This article conducts research through case study methods,literature analysis methods,and comparative analysis methods.Using the three-stage model of intergenerational inheritance proposed by Wang Xiangyao and Jin Yihe(2015),it divides intergenerational inheritance into three stages:participation management stage,joint management stage,and receiving management stage.It studies the characteristics of each stage,and points out that the intergenerational inheritance mode of Yaoji Technology is "collective succession,joint management",Yaoji Technology belongs to a family enterprise with multiple children.The founder paid attention to the cultivation of successors from the beginning.In terms of the distribution of positions and shares,except for the eldest son Yao Shuobin,who inherited the position of chairman,other important internal members of the family have received reasonable property distribution,effectively avoiding family internal friction and family struggle,enabling the company to "unite with the outside world",and reducing the risk of inheritance.At the board level,the company will introduce some professional managers to the board of directors in order to smoothly carry out intergenerational inheritance,providing assistance for subsequent investment decisions and business transformation.In terms of the significance of the topic,as domestic research on intergenerational inheritance issues often focuses on the stage,mode,and performance of intergenerational inheritance,there are relatively few articles studying investment decision-making issues in the context of intergenerational inheritance,this article aims to provide some reference value for research in this field.In terms of theory,this article combines some mainstream theories at home and abroad to propose different investment styles and investment characteristics at each generational inheritance stage,providing a theoretical basis for the research on investment decision-making reform.Starting from reality,taking Yaoji Technology as an example,by studying investment decision changes before and after intergenerational inheritance,observing performance changes before and after investment decision changes,analyzing investment directions and strategies before and after Yaoji Technology inheritance,and analyzing the economic consequences of investment changes,this article provides a reference for other family businesses in making investment decisions.In terms of research conclusions,after the company went public,Yaoji Technology underwent a series of investment decision-making changes before and after its intergenerational inheritance.This article mainly analyzed the investment direction and investment strategy,and found that:in terms of investment direction,enterprises before inheritance would implement diversified operations while taking into account their main businesses,so as to find the correct investment direction after inheritance;In terms of investment strategies,we find that:1.Intergenerational inheritance will increase investment;2.Intergenerational inheritance will make enterprises pay more attention to research and development;After intergenerational inheritance,enterprises will increase advertising and management costs.At the same time,attention should be paid to reducing bad investment before inheritance to ensure the smooth progress of intergenerational inheritance.The economic consequences of enterprise investment decision-making changes include:1.Significant improvement in investment efficiency;2.Increased operational and profitability;3.The company’s competitiveness has been continuously enhanced.