ZFA Research On Corporate And Governance Structure Of Property Right System

Family enterprises have become a major force driving national economy, but most of them are not faring well and few of them could become larger and stronger and live a longer life. The fundamental reason for this situation is the traditional family enterprise mechanism. ZFA is a typical family enterprise. It went through a short period of fast growth, and now is suffering fund shortage and talent insufficiency. Relying on related theories, this paper analyzes the factors which influence the formation of enterprise mechanism. It provides a solution to establishment of system of property rights and structure of governance; it also presents an analysis of the scientific level and feasibility of the solution on the precondition that the nature of family enterprise of ZFA company will not be changed.First of all, this paper summarizes the definition of family enterprises, theories of corporate governance, theories of property rights and outcomes of research on corporate governance of family enterprises.Secondly, this paper analyzes the institutional environment—external factors which influence the formation of ZFA company mechanism, including policies, social environment, cultural environment, financial environment and current developmental situation of family enterprises in China.Then, the paper analyzes internal factors influencing the formation of ZFA company, including introduction and analysis of background of ZFA company, industrial characteristics, analysis of the characteristics of the fund shortage problem and talent problem existing in the company and analysis of the reasonable objectives that the solution is designed to realize.And then relying on the above theories and analysis and on the premise that the family owns and controls ZFA company, the paper presents solution to establish system of property rights and solution to set up system of corporate governance according to the needs of ZFA company for fund and talents in the initial phase, the growth phase, and the maturity phase. Finally, the author compares solutions and objectives designed in this paper with foreign experiences and main ideas of domestic scholars, and makes qualitative evaluation and analysis, and thereafter summarizes the dilemmas faced by ZFA and gives solutions and prospective analysis of evolution of the mechanism of family enterprises in China.