A Study On The Impact Of Public Family Firms’ Governance Structure On Its Performance

Family business, as an organizational form of firm, is very popular in the world and ithas become an important component part of Chinese economy and also an important force ofeconomic growth. With the continuous development of China’s economy, family businesseshave played more and more important role in economics and sociology and have shown thetrend from small to big in scale, weak to strong in role and slow to fast in development.However, the family business was considered to be conservative, closed, narrow-mindedbusiness model and its sustainable development has not been paid enough attention by aca-demic circles and social. The research of family business is limited to such a point of analysisa sustainable way of smooth transmission to the next generation, and it lacks the research ofthe sustainable development of enterprises from the system level. Above all, this article haschosen the sustainable development of family business as the research topic, in order to findthe factors restricting family business’ development from the governance structure aspect.This paper reviews the research background and significance firstly, and summarizes theliteratures on family enterprise and the relationship between family enterprise governancestructure and it’s performance.Then, we analyzes the existing problems of China’s listed fam-ily business governance structure and performance, and analyzes how governance structureinfluces performance from ownership structure, leadership structure, organization structure,management characteristics and debt financing etc aspects.Next, after learning the principalagent model,we get that the enterprise must reduce the agency cost and give full play to theenterprise’s managers incentive effect if it want to get the maximum profit.And based on theprincipal agent theory, combined with the actual situation in China, we select the variables af-fecting the family enterprises’ performance, and inspect the correlation between these variab-les, then we use the factor analysis method to extract the main factor variables and empiricalanalysis this main factor variables and the listed family enterprises’ performance by linear re-gression, in order to make clear the core factors restricting family enterprises’ development.At last, according to the existing problems in the process of China’s family enterprises’develo-pment and the results of the study we put forward the relevant suggestions to optimize the go-vernment structure in order to promote the China’s family enterprises’ long-term development.