Research On Family Business Finance Governance Of China

The family business has become the main component of private economy in China.Afterthe first generation, centralized economic and emotional investment, the family enterprisesstruggle for sustainable development. But unique blood, marriage, geopolitical relationshipsbecome the obstacles of sustainable development.These ties are not equal to the businessmanagement.The entrepreneurial mind is no longer adapt to the growth of enterprise. Thefinance is the key of business, some failures of the family business were often arised infinancial crisis. Under the premise of stakeholder governance, through the rational financialpower allocation among different stakeholders, aim to disclosure standard financialinformation and form effective decision, incentive, commitment and evaluation mechanism,make the scientific corporate financial decision, improve the efficiency of corporategovernance finally.The finance governance is a series of institutional arrangements andmechanism design in order to maximize the value of the stakeholders. The closed propertymakes the finance governance right maintaine a strong" family complex", how the familyenterprise distribute the finance governance power properly is the key to solve the problem.This paper is based on the modern finance theory and corporate governance theory,combined with the China family business characteristics, draw lessons from domestic andinternational finance governance theory of outstanding achievements, research from the familybusiness finance governance main body and object,analyse the financial management problemsof Chinese family enterprises which are existed widely, establish the Chinese family enterprisesfinance governance framework. The frame includes the finance governance main body issues:closed property and concentrated finance governance right problems, the family take too manyroles, financial decision-making risk is too big; human capital problems;Finance governanceobject issues: funding problems and profit distribution problems.In view of the above question, put forward the the corresponding solution. from twoaspects.Through improving the ownership structure, breaking the closed property rights; buildthe trust relationship between the human capital and the family business, the property right isregarded as the ultimate incentive measures, set up an effective finance incentive mechanism;put forward the basic framework for property right allocation; improve the occupationcosts,reduce the benefit transportation and expropriation effectively.