Research On Governance Structure Of Chinese Family Business In Southeast Asia

After reformation and opening, private economy in China develops rapidly and becomes an important impetus of GDP. The achievements are remarkable. In the governance of private enterprises, family-management style is the unanimous choice. After more than 20-year development, private enterprises in China have transmitted from initial venture to development. And the original corporate governance structure will make some adjustments and changes.In this paper, theoretical analysis and case study and comparative analysis are used. The causes and characteristics to choose in Southeast Asian Chinese enterprises is analyzed in the perspectives of financing structure, ownership structure and control. And this paper finds that the generally used debt-financing model and concentrated ownership are the determinative factors of the inevitability of family-controlling enterprise. The unity of ownership and control determines the reasonability of family governance structure.In addition, the paper also takes the Group of Colombia, Indonesia and the Group of Hong Leong in Singapore as the cases to analyze and compare their governance structure. And this paper finds that the characteristics of the governance structure of the Group of Colombia are as the follows: the unity of ownership and control, family decision-making, family members generally take part in the enterprise management, great attention to the governance of relations and non-institutionalized family management. But the Group of Hong Leong has the following changes: a certain degree of the separation of ownership and control, the weakening of the paternalistic leadership and the introduction of new incentives and restraint mechanism. And thesechanges is related to the size of their own enterprises, diversification and internationalization. The are two innovation in this paper:1.First-hand information is obtained by myself. The author participates the research of theGroup of Colombia, interviewing family members and researching the characteristics and conditions of operation in the group and subordinate enterprises. On the basis of this first-hand information, the governance structure of the group is analyzed, guaranteeing the authenticity and validity of the research.2. Comparative analysis of the governance structure between the Group of Columbia and Hong Leong is conducted. Although the two companies belong to different countries and the size and operating characteristics of companies are also different, they both are successful Chinese enterprise groups and choose family governance model. There will be some interesting discoveries have been found in the comparative analysis of these governance structure...