Research On The Relationship Between Managerial Power Of Professional Managers Of Family Businesses And Their Performance

As a kind of important form of enterprises, the family plays an important role inthe history of human society. At first, family members play a great role in themanagement, but with the development of the enterprise, the professional managersneed to be introduced to manage the enterprise. Most of the professional managers haveonly power, but not the ownership, so the principal-agent problems are easilygenerated. How to arrange managerial power becomes more and more important.This paper proposes some hypothesis on the basis of summarizing the existingliterature and the theoretical analysis, and with the aid of SPSS and EXCEL statisticalsoftware, analysis2008-2010China’s listed company’s annual data,mainly study thefollowing three aspects:(1)The correlation of professional managers,pay and enterpriseperformance;(2)The correlation of professional managers,managerial power andenterprise performance;(3)How professional managers,managerial power impact thesensitivity of pay and performance.Research conclusion is as follows:(1)Chinese familyenterprise has higher pay performance sensitivity, professional managers,pay issignificantly positive related to enterprise performance.(2) Managerial power ofprofessional managers of family businesses is significantly positive related tooperational performance of enterprises and is negatively related to not operationalperformance of enterprises;(3) Managerial power of professional managers of familybusinesses affect the sensitivity of professional managers,compensation andperformance of enterprises.