The Research Of The Incentive-restricted Mechanism Of The Listed Chinese Family Enterprises In Different Stages Of Industry Life Cycle

Family enterprises is an important economic phenomenon in China, the enterprises in our country generally adopt the form of family owns. Family management and modern management widely exist in the internal management. In order to promote the healthy development of family enterprises in our country, it is necessary to study the running mode, the management mechanism and the incentive-restricted mechanism of family enterprises.Based on the research of the previous literature, I found the quantity of papers which involve the family business are little and the quantity of papers which involve the incentive-restricted mechanism of different stages of industry life cycle are less. This paper argues that family enterprises in different stages of industry life cycle should adopt different model of governance, which matches the different incentive-restricted mechanism. To divide the stages of life cycle of our family enterprises, this article takes the Chinese A-share family enterprises of real estate industry as an example. The cash flow method combining with the changes of sales growth in three consecutive years are adopted to determine the enterprise’s stages of life cycle. As a result, family enterprises are divided into three stages of life cycle:growth period,mature period and decline period. According to the division of the stages of life cycle, this paper researched the incentive and constraint problems in the three different stages of life cycle and concluded the incentive and constraint problems are different in different stages of life cycle.Then through the study of the success of Jin merchants and Fangtai group which in growth period, and the research of the failure of Huiyuan in mature period, this paper get the main factors which influence the success or the failure. Then the influencing factors of incentive-restricted mechanism of our family enterprises in different stages of life cycle were studied. Finally according to these factors, this paper draw a conclusion.Hoping that through this article research, our family enterprises which in different stages of life cycle can get some inspiration when formulate incentive-restricted mechanism:first, we need to determine the family enterprise’s stage of life cycle, and then combing with the development of their own situation to develop a suitable incentive-restricted mechanism.