Industry Competitive Degree Capital Structure And Family Business Performance

In the last ten years. more and more people have been interested in the family business within the whole world. Scholars investigated the reasons why the family business could become more and more prosperous. In our traditional understandings the family business is a backward form of business organization. which has a close relation with autocracy, dictatorship, obstruction and low efficiency. while the understanding is opposed to the reality. Not only the family becomes more and more prosperous, but also works much in many countries. The gap between the reality and understanding makes the scholars pay much attention to the research of the family business. Especially in China, the private sectors are the most active organizations, which create much wealth for our society and employ many workers. And most of the private sectors are family business. The researches in family business are very important for the economic development and the social stability.As for the research of family business, the scholars think of the special personalities of them firstly, which cause the differences in performances between family business and non-family business. My thesis will research the performances of the family business. In other studies, people just divided the sample into two parts: the family business and non-family business generally, and didn't refine the sample. Different scholars have different conclusions, so it's hard to have the same consensus. Besides, the scholars hardly have opportunities to communicate with each other because of the differences in classification. The conclusions of my paper are based on the domestic and foreign definition about family business, and combine to the realities of our country, and I get my own definition about family business. Besides, I pay much attention to the level of competition in a certain industry, and test the performance differences between the family business and non-family business in different backgrounds. In this context. I will investigate the reasons of the differences.In my paper, I choose three industries as my samples:manufacturing, wholesale and retail trade and social services. Among the three industries, the competition of manufacturing is the most competitive one. wholesale and retail trade is the second one. and social services is the last one. According to the research, the performance of family business is better than non-family business in manufacturing, while the-conclusion is not suit for the other two industries。At the same time, we prove that the performance of the family business is opposite to its debt ratio in manufacturing. But this conclusion is not suit for the other two industries.There are three innovations in my paper. The first one is that I study the enterprise performances of the family business and non-family business with different industries. Secondly, different industries have different competition degrees; I will prove the differences of performances between family business and non-family business with this background, so that 1 can overcome the inadequacy that some studies didn't refine the industries. The results may be closer to the substance of the performance. Thirdly, I pay much attention to the differences in the respects of capital institutions.The inadequacy of my paper is the selection of non-competitive industry samples. In China, seventy percent of the listed companies are manufacturing, the rest are dispersed in some other ten industries. This reality causes the result that the number of the samples in other industries is rather small. Because of this. I have to combine the wholesale and retail trade and social services into the non-competitive industries in my study. It may cause that the conclusions about non-competitive industries are not very accurate. But in the future, there will be more and more listed family businesses and this problem will be solved.