Research On The Motivation And Effect Of Intergenerational Inheritance Model Selection In Family Businesse

China’s private enterprises have developed rapidly after the reform and opening up,among which family enterprises play a pivotal role in the national economic system.After 40 years of experience,some family enterprises have entered the stage of stable growth,and even entered the global economic stage.They have become the main driving force of China’s economic growth.However,the shadow is always accompanied by glory,and the issue of inheritance has become a dark cloud over family enterprises.According to the survey data,90% of Chinese families want their children to take over.Meanwhile,the proportion of private entrepreneurs over the age of 50 is up to 70%.Chinese family enterprises have stepped into the door of all succession.Referring to the history book of intergenerational inheritance,it can be seen that Haixin Group lost all the family business in the second generation in ten years before,and Shuanghui Group’s father and son turned against each other and "abandoned crown prince" incident later.In the succession and handover cases of Chinese family enterprises,failure cases abound,while success cases are few and far between.Therefore,it is imperative to explore an effective way of inheritance,which is crucial to promote the smooth handover of the family from the first generation to the second generation and promote the sustainable development of the family business.Based on the importance of family inheritance to enterprise development,this paper takes Wanhe Electric,a typical family enterprise,as the research object,adopts the literature research method and case analysis method,and firstly summarizes the domestic and foreign literature achievements of intergenerational inheritance of family enterprises,and then combs the social emotional wealth theory,intergenerational difference theory,authoritative legal theory and principal-agent theory.It defines the concepts of family business and intergenerational inheritance.By analyzing the design of the succession process of Wanhe Electric,this paper analyzes the motivations for the selection of the case succession mode,including: the inheritors’ retreating to the background and the desire to realize the inheritance within the family."Transitional succession" can help make up for the lack of authority of the heirs,promote the exchange and integration of old and new ideas,ensure the smooth succession and handover of the family control,and control the agency costs of the family business.Finally,it analyzes the effect of case inheritance mode selection and draws the following conclusions:(1)This paper believes that it is possible to refer to Wanhe family inheritance mode to establish and improve family business inheritance system planning as soon as possible,which will help the second generation of the family to take over the management of the enterprise smoothly,and to some extent can have some positive effects on the financial performance of the enterprise.(2)The new and old generations of Wanhe have optimized and upgraded the company to intelligent manufacturing through four strategic transformations: product and service transformation,technology transformation,brand transformation and marketing transformation in the intergenerational inheritance process.(3)The second generation led Wanhe Electric into new areas,handed over a beautiful report card.Lu Yucong also established and consolidated his personal authority and gained a certain status.(4)Through a series of innovations and transformations,Wanhe Family has achieved further profit growth,improved its comprehensive competitiveness,consolidated its position in the industry,and won a good reputation and image.The improvement of its industry status and reputation has laid a foundation for the company’s future performance growth.Finally,this paper proposes that we should delegate power in time,establish and improve the intergenerational inheritance system of family enterprises,pay attention to the cultivation of heirs,treat the differences between generations correctly,give play to the advantages of young people and make use of the collective wisdom of the new and old generations.