Study On Optimal Ownership Of Ultimate Controller Of Chinese Listed Family Company

Family business the most primitive form of business organizations, nowadays also occupy important position in the modern enterprise organization form in number and scale. The modern family business of China have only experienced 30 years’ development and play a vital role in national economy. In the past years, family business got great improvement in numbers, scales and competitiveness. With the opening of Bourse pour PME(2004) and Second-board Market(2008) which make family business get IPO easily. Previous studies have focused on the definition of family business research and the relationship between ownership structure and corporate value, less from the perspective of ultimate controller and the relationship between the interests of family business. Therefore, this article choose the optimal ownership of ultimate controller of Chinese family business as the research subject.In order to explore the problem of optimal ownership of ultimate controller of family business, this paper finished those work: ①Although there are many studies on family business, researchers have not come to an agreement on the definition of family business. Through reviewing the works of others, this paper have a new understanding of the definition of family business,thus defining the objects of our research; ②La Porta pointed that in family business always exist ultimate controllers that play vital role in the arrangement of ownership structure. This paper adopt two ways(namely equity control chain and social capital control chain) to detect the ultimate controllers, helping to improve the accuracy of the research; ③ By reviewing the papers concerning the relationship between ownership concentration and corporate performance, as well as principal-agent theory, this paper build a model to find the factors that affect the optimal ownership of ultimate controllers and the correlation of those factors; ④This paper collects data of 374 listed family companies, to verify relationship between the optimal ownership and the various influencing factors, from the perspective of ownership structure adjustment; ⑤By quadratic curve fitting, it finds that the optimal ownership of the listed family companies’ ultimate controller is 45.07%, it also proves the inverted u-shaped relationship between the ownership of ultimate controllers and the interests of family.On the basis of above research, this paper puts forward suggestions to improve the governance model of family business, as well as recommendations on how to protect the interests of small and medium-sized investors. Finally, this paper points out the aspects that future researches can deepen.