| Family business originated in 18th century in Europe, the birthplace of the Industrial Revolution----United Kingdom, experienced 200 years of history, still plays an important role in the global economy. Family business in China is to promote economic development as a "main force", since the reform and opening up of China, especially Jiangsu and Zhejiang have emerged along the southeast coast a large number of family business along the southeast coast,they has greatly promoted the development of China’s overall economy, for instance,to mitigate the employment pressure, ensure efficient supply and gradually form a healthy economic structure. The family business survives in China’s economic system transformation in the larger environment. With in-depth portrait of China’s economic development trend, the emerging economic power on behalf of private enterprises are rapidly rising.With the size of the family business continues to expand, for the pursuit of sustainable development, they need to continuously enhance corporate value, expand corporate power and obtain the additional capital.The way of self-financing only adopted by business entrepreneurs and their family members has seriously hindered the development and growth of family business, it needs some external financing. However, our family business by now is unlike the central level or state-owned enterprises and large-sized enterprises have a wide range of formal financing channels. There are some reasons can explain this situation just like the small size of family business, lack of standardization of management and so on, whick can lead to larger transaction risk and cost of bank credit. As a result, banks don’t rank the family business as their first choice of lending objects.Since the global financial crisis in 2008, China’s economy’with the trend of stabilization and recovery is becoming clear, family businesses play their own advantages, and actively adapt to market changes.In the national series of capital growth and domestic demand expanding, family businesses appear some positive changes. But funding remains a constraint for the further development of family business as a key factor in the family business in general. Facing the development of capital markets and diversification of financing channels, family businesses must think about how to optimize their structure of financing options to meet their own development more scientifically and effiectively. Meanwhile, a series of these problems need the community as a team work to deal with.Looking at home and abroad, scholars and theorists paying attention to the financing and capital structure of family businesses is far from emphasis on the role of economic development, academic researches on the family business financing taked a small ratio, and the explanatory power of financing is also inadequate. Most of the researches focus on the family structure,family management, corporate heritage and other aspects of business management, not the capital concentration, distribution and utilization. Lack of funds and financing difficulties as a kind of "bottleneck" and the long-term trend have restricted the development of family business. From existing point of view of corporate finance researches, corporate finance theory as an important part of financial studies have been more mature, but very few people refine the family business financing behavior, and fewer in-depth analysis of factors of corporate finance structure, financial efficiency and reasons of changes in financing and so on. Meanwhile the academic financing theory still cannot cohere with the practice of test results, existing diversity, complexity and environmental variability and other characteristics similar to the theoretical structure, there still are many issues and debates need to be thoroughly solved.The development of family businesses in China has shown a close relationship with the characteristics of national conditions. So the listed family businesses and their financing structure and factors in China appears more complicated, which are influenced by the economic environment and political system, or other effects. Therefore, the theoretical and empirical analysis of financing behavior of family businesses needs further explanation and development. This article hopes to analyze main factors impacting the financing decisions on the perspective of corporate financing behavior(structure), and on this basis to distinguish the most critical factors for putting forward the corresponding strategies to achieve the optimal financing behavior. Then combining the actual development of China’s family businesses, analyzed their own advantages and disadvantages, improve the efficiency of corporate finance.This article firstly discusses the theory of family financing areas. Through reviewing and sorting the family study and related research on concept of family business, corporate finance theory at home and abroad, this article comes to define the concept of family business, including the traditional finance theory and modern theory. The scope of listed the family business in this article is the listed companies shares held by a natural person or his family directly or indirectly, then the listed company can be defined as family listed companies.Secondly, this article summarized the approaches of listing used by family businesses, a total of 6 forms. In addition, china’s present family-owned companies financing advantages and disadvantages of survival and development were analyzed.Thirdly, corporate financing structure in essence is the result of the financing behavior, which not only reveals the ownership of corporate assets and debt level of assurance, but also reflects the risk of corporate finance, which means that the liabilities of the mobility in the greater the proportion, the greater the risk of corporate debt, and vice versa. Therefore, this paper used the financing structure instead of family financing behavior. Financial structure of enterprises is affected by many factors, such as the size of the business, corporate governance, the size of the demand for funds and external financing environment and so on. Reasonable financing structure can effectively reduce financing costs, and enhance their financial capacity and market competitiveness.Finally, this article analyzed the impact factors of the structure of corporate finance, including the family factors, business factors, financial factors, external factors. These factors are then refined into quantifiable indicators as part of empirical research on family business finance major variables to explain behavior, including return on equity (ROE), earnings per share (EPS), market capitalization of more than nominal value (MBR) represents the situation of the market value of the company; financing structure variables representing financing of specific acts of the consolidated statement of two variables, namely, asset-liability ratio (DAR) and the equity ratio (DER). Control variables mainly are ownership concentration, dispersion, the company’s growth rate, size composition; Family factors include family holding ratio, degree of family control; family governance structure, including senior appointments variable conditions, board size, outside directors of the Board members and so on.The use of multiple linear regression method to research corporate financing behavior of family factors, the overall fit the model are the degree of significant level of each factor to observe the behavior of family firms financing a significant factor, in order to optimize the behavior of family business financing proposals. Empirical results indicate that the most critical factors which affect our family of listed companies in financing behavior are the main source of financing ratio, the proportion of family ownership, the proportion of top ten shareholders, the net return on assets, earnings per share, the enterprise market value of more than nominal value, growth rate, firm size and other factors.According to the results of this analysis, to propose the recommendations of corporate finance behavior in order to achieve the optimization of the family finance decisions. Make good use of the positive effects of family structure and the governance structure, to achieve bi-directional optimization. The business entrepreneurs focus on improving individual general ability to maintain good relations with the community network and broaden the horizons ideas, and actively use a wide range of financing. And family business holding company may not only be listed as one way to go IPO. After the 2008 financial crisis, with the adjustment of national industrial policy, national policies have shown small and medium enterprises (mainly private enterprises) support, paid attention to the family business during China’s economic transition opportunities. Family businesses cautiously build their core competencies to grow and develop in the highly competitive market environment.In this paper, it does preliminary research in the theory of the financing of family businesses, and improved methods and applications also:first, summed up several forms of the family business in China can be taken to achieve the listing, rather than the traditional single enterprises through the issuance of stock to market goals. Second, take the family of entrepreneurs business negotiation skills, the desire to control and the degree of risk into the financial structure of the investigated factors, and proposed the assumption between financing structure of the family relationship and these factors.Although the research samples are representative but the number is not big enough, it limited the scope of China’s best family listed companies in 2010,the research results are often not universal and comprehensive. Of course, these companies represent the good model of the family enterprise development, so also can be considered to study other aspects of family businesses. |
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