Analysis Of The Governance Structure Of The Family Business Research

Family Business is a type of extremely general enterprise. It has many reasons and a series of advantages with contrast to other types of enterprises. But during their development, family business meet with many impediment which make it stay at a lower level. The major reason impeding the development of the family business lies in the inferior corporate governance. The Corporate governance of the modern corporation system can conquer the shortages of that of the family business because it is established in order to fit for the modern economic institution. But the cost of completely reforming the Corporate governance of the family business to that of the modern corporation system is too high to successfully establish it. In fact, improving the original corporate governance of the family business can also establish a effective corporate goverance, which is fit for the characteristics and able to exploit the advantages of family business. Chinese private enterprises can also refer to the effective corporate governance during it's developing.