An Comparison And Analysis On Corporate Governance Of Family Business In China

Chinese economy got a huge progress after reformation and opening. Family business is one of the most important driving force which can't be ignored. As of June 2010, there were totally 305 family businesses listed in SSE and SZSE, which accounted for 36.2% of the total number of listed private firms and their market value was 1,4657 billion yuan. In 2009, their average profit was 169 million yuan. At present, most of family business is in the transition period, so establishing the good corporate governance is the most important factor. Although most Chinese small and medium sized family business's ownership and management did not isolate, the separation of the two rights is the only way which the family business must go through. Therefore, our research is focus on the ownership and management which is hot issue in the discussion of corporate governance.The paper is divided into seven parts, the first part raise the question about Chinese corporate governance. The second part introduce the definition of family business and the theory of family business governance structure, which paving the way for understanding other content in the literate. The third part is about the family business and the corporate governance in foreign. The fourth part is the overview of the development of Chinese family business and discusses the evolution of governance structures. The fifth part is the corporate governance comparison of family business between China and other countries. PartⅥis a case concluded corporate structure change progress of Chinese family business in recently decades. PartⅦis the conclusion and outlook.With some kinds of research methods, the author got the following conclusions:The family corporate governance is appropriate for China Small and Medium family business, but the medium and big sized family business which pursue long-term development, ownership structure must be reformed, the operate right must be decentralized.