Residual Claimants And Control In The Phylogenetic Analysis Of The Family Business - Lanzhou Huanghe Enterprise Group

In the modern firm theory, the firm is looked on as the coupling of a series of contracts. Because of the incompletion of contract, the residual claims and residual control which are not listed clearly in contracts must be collocated to weaken or eliminate opportunism activity to make the manufacture proceed in low cost. In family business, the collocation of two rights has its particularity because of the existence of relation of relative and blood. In terms of this paper, the relation of relative and blood makes the collocation of two rights in family business differentiate from that in the classical firm and modern firm: the residual claims has peculiarity of a whole, but the residual control has not the character. Aimed at the relation of relative and blood in family business, this paper analyzed the collocation of the two rights in family business in base of residual theory. And through the case analyse of Lanzhou Huanghe corporate, the standpoint is proved.