Empirical Analysis Of Managers’Characteristics Of Founding Family-Listed Companies And Their Value

In China, with the rapid development of private economy,"The Family-Controlled Firms" became a prevalent form of enterprise organization, since the late70’s in last century. The Family-Controlled Finns play an extremely important role in promoting China’s marketization, industrialization and overall economic development process.On family enterprises develop, it has become a widespread social concern that how to evaluate the value of family enterprises, how to choose the managers of family enterprises, and how the different members as managers affect the firm’value. This paper analysis the relationship between the "Founding Family Firms" managers’ characteristics and corporate valueThe "Founding Family Firms" stands for the meaning of the firms which are IPO listed, non-control-transfered, and natural person (founder or family members) actual controlled. This paper chooses648observations of the founding family firms in Shanghai and Shenzhen stock markets of year2009-2011. With the standard and the empirical study of combining research methods, and the family or own characteristic of the managers as the research object, with the principal-agent theory and altruism theory. This paper studying on the effects of managers’characteristics to the value of founding family firms.At present, domestic and foreign study of family enterprises are comprehensive, mainly based on the origin and the definition of family enterprises, family enterprise agency theory, and family enterprise management. But most scholars have different opinions. The empirical study of this paper indicates the following results:1.in the founding family firms, CEOs from family members takes negative effect to the value of firms. The founder of the firm served as CEO has a positive effect, however successor CEO have the negative effect, and the nagative effect is veiy strong.2. single person takes both CEO and Chairman positions affects corporate value little.3. the stock ownership of the CEO and corporate value are related.4. the degree of CEO and corporate value correlated.Through the research we learn that, although the founding family enterprises attach great importance to the long-term development of enterprises and the family reputation, the founding family business success is largely derived from the founder of the special quality and ability, problem of inheritance has not been solved. If the heir take over the position of CEO, attention should be paid to personal quality and ability training. The future current should be occupation manager and family management take the same place in firms. At the same time, choice of occupation managers more reference factors, attention should be paid to the education, management experience, background and other personal characteristics.