Empirical Research On The Relationship Between Chinese Family Businesses’ Governancemechanism And Governance Efficiency

During more than30years Chinese reform and opening up, Chinese familybusinesses grasp the favorable opportunity, exert the unique advantages, go forwardrapidly on the path of development, and it has become the main force in the market. Today,family enterprises not only occupy the vast majority of Chinese private enterprises inquantity, and it is also very important in the economic status and functions and became aimportant player in Chinese economic development. But at the same time, along with theChinese family businesses’ scale-up, their limits are becoming more and more obvious, theserious shortage of capital resources, human resources and trust resources is increasinglyrestricted the sustained and rapid development of Chinese family enterprises, so, therequirements of develop and integrate the family business governance mechanisms aremore and more urgent Therefore, it has important theoretical value and practicalsignificance to research into the family business governance mechanisms for improving thecorporate governance efficiency.Based on an extensive literature review and study, this paper conducts an analysis ofthe development process, the present situations and the main problems of Chinese familyenterprises, then conclude the main existing problems of the governance mechanism in theChinese family enterprises at this stage, such as the problem of ownership structure is tooconcentrated, family governance, the imperfection of external system and the inheritance.Then, the relationships between the Chinese family business external governancemechanisms and the corporate governance efficiency are discussed based on a researchmethod that combines theoretical research and empirical analysis. It mainly includes: first,it has some theoretical significance in studying the effect of external governancemechanisms on family business governance efficiency through a new perspective of IBV,and it may be helpful to enrich and improve the issues related to the governancemechanism of Chinese family enterprise; Second, on the basis of literature research, thispaper illustrates intimate connection between the internal governance structure and familybusiness’ governance efficiency, then constructs a relationship model and analyses themodel empirically; At last, we get a series of conclusions and gives correspondingsuggestions for this issue according to the model results. Meanwhile, we analyzes thenecessity and its impact factor of the family business governance mechanisms’ evolutionbased on the enterprise’s life-cycle theory and path dependence perspective in this study.Finally, there are some conclusions and summaries for the articles about research limitations and shortcomings.This paper reveals the intrinsic link between family business governance mechanismsand governance efficiency by the method that combines the theoretical analysis andempirical research. Provide some suggestions for the family firms to choose the favorablegovernance mechanisms at different stages for the purpose of improvement.