Research In Correlation Between The Choose Of Insider Controller And The Performance Of Family Enterprises

With the development of China's market economy, our family enterprises play an important role in the economic and social increasingly. Family enterprises scale develops from small to large, from weak to strong, and its development trend has gradually accelerated. There are a lot of family enterprises in Shanghai Exchange and shenzhen Exchange in our countries. Family enterprises not only become the main mode of development of SME in China, but also is an integral part of the public companies. When the family enterprises grow and develop , how to evaluate enterprises performance and choose the internal controller of the family enterprises becomes issues that most people concern . Therefore ,the perspective of this paper is family firms, analysis the relationship between characteristics of internal controllers and corporate performance.According to the mainstream of economics, family firm is a backward form of business organization. It will separate its management from ownership, and will become to the modern corporation that professional managers operate eventually. However, in the reality, there are still many family members as internal controllers in China family companies. Their performance is not bad than other forms of business organizations, and that shows that China public companies still have the vitality of development, and they meet China development environment.This paper consists of four chapters. The first chapter elaborates the research backgrouds and significance of this paper, and demonstrates the need of family firms, in addition, the it presents main study tools and methods in this paper. In the second chapter , firstly, the definition of the family companies, study scope, family companies characteristics have been given. Secondly , the paper recalled previous corporate governance mode and performance researches. Finally, the paper demonstrate the issues that need to be addressed in family firms inner managment through three related theories, that are the Principal-agent theory ,family control ,family participation and leadership qualities. The second chapter laid the theoretical foundation for the follow-up study of the paper. The third chapter is the core of this paper. Firstly, the hypothesis of this study , the selection of variables and the basis of sample data selected are listed. Secondly, this study made a descriptive statistics analysis and variance analysis. In the variance analysis , paper has detailed analysed different indicators how to influence family enterprises performance, and analysed whether there has contacts in the internal controller and performance in public family companies, and explained results of analysis. The fourth chapter gave the results of the study hypothesis in the previous chapter, and the writer proposed advises on family companies, in the last listed the inadequacy of this study.