Research On The Governance Structure Of Family Business Based On Enterprise Life Cycle Theory

Family business is an ancient form of enterprise organization, and widely exists in all around of the world. Since the reform and opening up, as the fast development, China’s family enterprises contributed to the development of the national economy. However, for a long time, family business is not been paid great attention from theoretical circle. The lack of theoretical research and the immature related environment and policy, the family business arises more and more governance problems. So, the family businesses governance structure has become the important subject to be solved in theory and practice.From unique perspective of the enterprise life cycle, this article analyses and researches characteristics and governance structure of family business in the different life cycle stage from static state and dynamic state. In this paper, the research content mainly includes three parts: The first part define the family business, then discusses the domestic and foreign research present situation of this topic and the theoretical basis, leads to the research problem in this paper from coupled perspective of the enterprise life cycle theory and related theory of modern company management. The second part introduces the development process of our family business, and proposed a mathematical model for each stage of the division of the family business. From the initial, growth and maturation of three stages of enterprise, the second part detailed analyses the characteristics of each stage and the governance structure. Then, a typical case study of the New Hope Group verifies the previous theoretical analysis powerfully from two aspects of development course and the experience and lessons. The third part, analyses the factors in the evolution of corporate governance structure in detail, proposes the selection for family business on governance structure, and provides experienced reference, methods for our family business.