Research On Investment And Financing Of Family Business Management Structure

As the most common organization in the economic society, family business has a long history. In China, family business has gained significant development and played an increasingly important role in the economic and social process since the opening-up. However the family business has been facing many restrictions during its own process, which interfere the sustainable development of family businesses. In order to break these restrictions, management structure of the enterprise shall be optimized. Enterprise investment and financing activities and management structure are closely related, while financing determines the right-obligation relationship between the enterprise beneficiaries. The aforesaid relationship is the basis for enterprise management structure, while investment decision-making and operational processes are application of management structure which has a significant impact on business investment. Enterprise value comes from business investment, and one goal of improving management is to improve the investment decision-making. The investment efficiency of the financing would be counter-productive to financing. Therefore, from point of view of the family business investment & financing and efficiency of investment & financing, correlative and systematic study of family business management issues has an important theoretical and practical significance.This paper is comprised of five parts. The chapter I is to raise questions and to introduce the background of this study, plus purpose and significance of this research. Besides, research at home and abroad and the main research contents are reviewed to determine the main elements of the framework of this study, research ideas and research methods. The chapter II is to study the family business in china, management structure, the current status of efficiency of investment and financing, as well as to explore the causes of the above mentioned phenomenon. In Chapter III, enterprise management, the efficiency of the relationship between investment and financing will be studied. The efficiency of enterprise management and the relationship between investment and financing will be revealed to lay a sound theoretical basis of the optimization of enterprise management structure presented thereinafter. In Chapter IV, in the basis of former analysis and the presentation of actual status of domestic family business, the optimization initiatives of enterprise management aiming to improve the efficiency of investment and financing will be forwarded. Chapter V is about case studies. In this part, the main points of this paper will be demonstrated through presenting the development process, investment and financing activities and management structure of The Giant Group.