Research On Financing Behavior Of Family Business

As the most ancient form of economic organizations in the history of mankind, family business is not only the world's most universal type of enterprises, but also the dominant pattern of private business in China today. What's more, it is a major group that can not be ignored on the socio-economic map. Family business is different from other economic organizations. Its heterogeneity and the complicated and special financing activities derived from the heterogeneity reflect the fact that the existing corporate financing theories lack in applicability and are full of shortcomings. And related theories exploration and empirical analysis needs in-depth studies. Based on the heterogeneity and complexity of the endogenous relationship structure within family enterprises, the diversity and constraints of the external financing environment, as well as the laws of change in the life-cycle multi-dimensional fluctuations, this paper re-examines and re-considers the applicability of the current mainstream financing theories to family enterprises'finance activities and the theoretical bias. Also, this paper makes a multi-directional, in-depth systematic study of the family enterprises'financing behavior.The study started around the following aspects. First, analyze the endogenous and heterogeneous relationship structure resulted from family embedding within family enterprises. Study family enterprises'complex and unique financing behavior which is different from other general enterprises in different aspects, including financing goals, gray capital flows, control preferences and the authority of business owners. Build a finance decision-making model. Point out that family businesses'financing behavior and the features of its financing structure are the mapping of the utility of the endogenous and heterogeneous relationship structure, and that they are dynamic equilibriums of family interests and business value. Second, based on the analysis of endogenous relationship structure utility, explore and analyze the external financing environment, which affects and restricts the financing behavior of family businesses, and study family businesses'financing activities in the credit market, the informal financial market, bond market, and stock market through financing signal-sending game theory and other related model. In allusion to the objective existence of ownership discrimination and scale discrimination in macro-financing environment, this paper points out that family businesses'financing activities reflect that the corporate effects of levels from the micro-enterprise management to the macro-financing system, and that they are results of rational choices in constrained financing environment. Third, organically connecting the family enterprises'financing activities and its life cycle, analyze the dynamic correlation between them. Through modeling, analyze the dynamic transitional operation mechanism and the basic laws of financing activities in various stages of start-up periods, growth, maturity and transformation (recession). Finally, design questionnaire structure and variables about the family enterprises'financing. Using mathematical statistical methods and statistical software platform to analyze sample data through statistical tests, which provides a factual basis for the theoretical analysis and verify its reliability and validity.With a whole, organic, dynamic thinking logic, through theoretical and empirical research, this paper explains family firms'financing behavior mechanism and its complexity, specificity, and dynamic, revealing the process, substance and behavior law of family firms'financing activities. Overcoming flaws in previous studies that emphasized too much on the partial while dissever the whole, this paper puts the factors that will affect the behavior of a family enterprise including endogenous relationship structure, utilities and dynamic changes of external financing environment into a unified research framework. Outline the clear outline, system framework and operating path of the family enterprises'financing activities. Breaking through the vision limitations of traditional corporate finance theory, putting business owners'authority and personal attributes into the study, the paper creates another dimension for the family businesses'financing study, which better interprets the uniqueness of its financing behavior; In allusion to deficiencies of single viewing angle and static study model, combined with two different perspectives, the formal finance and non-formal finance, this paper analyzes the family businesses'financing problem in the real environment, emphasizing the dynamics and diversity of multi-dimensional fluctuations the family businesses reflect in their life cycles, and the paper successfully presents a breakthrough for more objective and comprehensive analysis and interpretation of family businesses'financing behavior.