Research On The Internal Control Of The Coprorate Governance In The Family Enterprise

Family enterprises exist widely in the world, and play important roles in economy field. Most public companies in the world are family enterprises, for instance,90% companies in U.S,80% companies in Germany, and 48.2% companies in South Korea are controlled by families. Besides,75% out of 500 big companies in India and 76% out of 8000 big companies in Great Britain are also controlled by families.Ever since the Reform and Open Policy in China, the national economy grew rapidly and achieved great success; private-owned enterprises were important impetus and innovative force to the economy development. According to Department of Commerce, there are 150 thousand new family enterprises in China mainland each year; however,60% of them bankrupted in less than five year, and the average life-spans were 2.9 years.In factual, how the inner control is a key point for family companies to develop stably, and the governing structure plays a big role in the interior controlling.According to literature review, little research was focused on interior controlling in family enterprises(being total documents), but mostly on audit, which pointed out the disadvantages in family enterprises interior controlling. Besides, some of researchers in China realized the importance of family enterprises interior controlling, and start to study researches in relative topics abroad. However, since the family enterprises have different cultures and histories of development with those in western countries, the research based on the enterprises in China becomes necessary. The dissertation, "Research on Interior Controlling of Family Enterprises", of graduate student Keguang Li, in Jinan University, mostly analyzed the modes in interior controlling in different development phases, but did not mention the specific controlling methods and content.Based on previous discussion, this paper focused on interior controlling systems in different development stages. Referring to some successful management of family enterprises, such as Wanxiang Corporation, Japanese companies and companies in Great China (China Mainland, Hong Kong, Macau, Taiwan and Overseas), together with interior controlling theories, this paper suggested the interior controlling systems which are appropriate to the sustainable development of family enterprises in China.