| In China’s 40-plus years of reform and opening up,the private economy has been greatly developed.In this process,a large number of excellent family enterprises have emerged,which have played a great role in the development of the national economy and become the mainstay of the national economic development.At present,as the first generation of family founders is getting older and the new generation of family members is emerging,the succession of Chinese family businesses has entered the peak period.As a typical characteristic of a family business,the establishment of authority is the key to its intergenerational inheritance and is closely related to the long-term development of the business.After a comprehensive and comprehensive analysis of family business succession cases at home and abroad,it can be found that strategic change is an effective method for the successor to establish authority,which helps to enhance the legitimacy of the successor,so as to establish their own authority.However,according to the report released by China Aviation Trust and UBS,in general,70 percent of wealth is lost within two generations,and 90 percent of wealth is lost within three generations,which is what we often say,"three generations of wealth".Family businesses seem to be unable to escape the curse of "first,second,third failure".There are many vivid cases such as "flash in the pan" or "fall in the family line".Is it that the second-generation successors gradually reduce the value of the enterprise in order to establish authority and implement strategic changes? Unfortunately,none of the available research has looked at this behavior or the strategic motivations behind it.This paper intends to select Dayu water-saving as the case study object,use the research method of case analysis,and innovatively integrate authoritative theory,social identity theory and advanced theory to carry out relevant research on the overall inheritance process of Dayu water-saving.By collecting and sorting out the past experience of entrepreneurs of the two generations,the training mode of successors and the inheritance characteristics of inheritors,etc.Have a certain understanding of the inheritance background and process of Dayu Water-saving,and then compare it with enterprises in the same industry and industry index,discuss the investment strategy reform implemented by the successor Wang Haoyu in this process,so as to reveal how the enterprise’s investment strategy changes before and after the succession of the successor and its specific performance in several aspects.On this basis,it analyzes the change of enterprise value under the performance evaluation link such as basic financial index and comprehensive financial index.The main conclusions of this paper are as follows: first,the risk and loss of intergenerational inheritance caused by emergencies can be reduced through the selection,planning and cultivation of inheritors in advance;Second,successors can build their authority by investing in strategic changes to increase the value of the business.Through the above analysis,this study can obtain the following enlightenments: First,it is very important for family businesses to formulate a complete succession plan.When cultivating heirs at an early stage,introducing them into the role of successors can help them establish their authority earlier and more quickly.Secondly,in the process of intergenerational succession,the influence of strategic change on the authority construction of the successor should not be ignored.Finally,the strategic change should be carried out step by step,not in haste,Avoid large fluctuations in enterprise value.It is hoped that the conclusion and enlightenment obtained from this case will have certain reference value for how to realize inheritance of Chinese family businesses,promote the deep-rooted cognitive structure changes of inheritors,promote the selection and cultivation of inheritors,and further enrich and improve the theoretical research achievements of Chinese family businesses. |
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