The Empirical Study Between The Kinship Of Family Listed Company And The Efficiency Of Corporate Governance

Family business in human history as the oldest form of business organization, is also the most common form of living tissue in the global memory and main stream business.In recent years, with the rapid rise of the large number of family businesses around the world, the family business has been unprecedented attention from all circles at home and abroad, and some related research is increase in the sharp.Among the many findings,the family business governance mechanisms and management efficiency is one of the hot issues of domestic and foreign research.With the rapid development of the family business, family business governance type change from a single family include the founders and core members to the control of a close family members, they also participate to the business management activities, in the presence of inter-generational transfer of enterprise development process, a large number of distantly related family members may also be added to the business management activities.in this case, family members create a huge family network, in some special cases, family members even broke through a simple blood relationship.extending to a order ideological and spiritual resonance-based quasi-familial networks, they include mainly venture partner, a family friend, friends, etc., which makes kinship family business become more complex and diverse.Thus, the corporate governance model will also make the family controlling stake and management rights of the family complicate. Family controlling stake are gradually diluted, corporate governance model change to the modern corporate system, to the diversified development path. With the non-core family members enter the family business, it does not mean the end of family management and control, but the only way to ensure family business sustained and the family business of sustainable development.in the time of Family members at the border continues to expand, relationship becomes more complex, diverse family governance model,the relationship of different members of the family that controls the different modes have great practical and theoretical significance of the impact of corporate governance efficiencyIn the data analysis, most of the hypothesis is confirmed. In the empirical analysis, this paper get the following conclusions:(1) the relationship between close family ties and family governance efficiency is significantly negatively correlated, close family members control mode is an inefficient governance.(2) The relationship between distant family tie and corporate governance efficiency distantly significant positive correlation, distantly related family members control mode is an efficient model of governance.(3) In close family member control mode, the family stock holding rights and governance efficiency significantly positive correlation, while the family management rights and governance efficiency negatively correlated, but not significantl.(4) In the distantly related family members control mode, the family stock holding power has a negative correlation with the governance efficien, and the right to family management and governance efficiency was positively correlated, but not significant. It can be seen, and the actual control of the family members who have different genetic relationship at the time of entering the family business, the choice to become the controlling shareholder of the family business into the enterprise or the authority will have different impact on the efficiency of corporate governance (5) independent control mode is an inefficient governance model, and the impact of complex kinship governance efficiency is not stable.The innovation of this paper lies in the following three points:the first one, while the paper define the kinship in the family business, using the type of controlling shareholders and corporate managers in the family members to make a decision, but the previous only use family type belongs to shareholders to decide the form of kinship terms.in this way,it can be explain kinship in family business well, and but to also fit with the definition of family listed before. In this paper, in the base of that a systematic review of the impact of genetic relationship of corporate governance on the efficiency. found the family management of the family have different degrees of impact on corporate governance efficiency.This should be the biggest innovation of this paper, not only enriches the existing research on family business governance efficiency, but also makes further research related to genetic relationship.the Second one, this study found that, under the control of different kinship, the number of family members in family business management team have great affect on corporate governance.and the existence of affect is very differences in efficiency. In the course of the study on the family business. only very few scholars to study it as a control variable is introduced. The third one, with the choice of research subjects, in addition to the actual control can be traced back to those natural or family, but family members do not participate in business management activities of enterprises, in order to highlight the impact of the management of the family in the process of corporate governance on firm performance effect.