The Research Of The Interaction Between Intergenerational Transmission And Related Factors Of Guangdong Family Business

Chinese private enterprises have flourished since the reform and opening up. More than 3,000,000 private enterprises of which 90% are family businesses. Chinese mainland had the beginning of the reform and opening up. In the 1980 s, and most of the first generation of entrepreneurs have been into old age nowadays. In the following several years, It Will be the peak of the intergenerational transmission of family businesses. Whether the enterprises achieve the smooth transfer of power not only concerns their own survival but will have a significant impact on the sustainable and stable development of China’s economy. Therefore, we need to grasp the factors which have a decisive impact on the intergenerational transmission of family business to help companies survive the pains of power transfer.This paper considers the Lingnan regions of China has sediment of Confucian ethics and family culture for thousands of years, which can represent the characteristics of Chinese enterprises, and most enterprises have been enumerated to generation. So the family business in Hong Kong Cantonese Businessmen has been selected to be the study sample. On the basis of a comprehensive analysis of Hong Kong main board listed in the family business on the hundreds of financial statements, the text first measure the concentration of control of the family firm listed in Hong Kong the intergenerational transmission around, and then make analysis of the factors that may affect the control of the degree of concentration from the external governance environment, internal governance structure and financial indicators of enterprises.The study results show that intergenerational transmission itself is a process of loss of family control. In corporate intergenerational transmission process, the five factors of the total capital scale, the new successor to the expansion of investment willingness, corporate profitability, the proportion of managerial ownership and board size will affect intergenerational transmission. Moreover, in the course of the research results of the analysis, the paper also creatively put forward the “intergenerational transmission of family business enterprise boundary theory."For conclusion, this paper argues that for the smooth conduct of the intergenerational transmission of family businesses, family entrepreneur can consider in two ways. First, arrange both ability and integrity of professional managers as assessor to assistant successors survive the instability of succession at the beginning; Second, leave some untapped resources or accounting arrangements on certain preparations so that the successor can continue to maintain substantial profits when companies taken over, thereby securing the family ’s prestige. As for the new successor, you should avoid blind expansion of investment, and make prudent investment in the beginning of taking over the enterprise.