The Study On Chinese Family Enterprises Equity Incentive And Its Governance

Family enterprises has been playing an important role in the economy of developing and developed countries. It has become an enterprise group not to be neglected in the future economic development. However, along with the accelerating progress of marketization and the requirement to integrate with world quickly, family enterprises’ development was restricted by it’s equity structure cored on family property relations. Generally, family enterprises is full of vigor, competitiveness, and pioneering spirit during the entrepreneurial stage. But after completed the primitive accumulation quickly, family enterprises can’t across a series of development obstacles because of the constraint of family culture. Most family enterprises will meet many issues such as fuzzy of equity structure, invalid of governance structure and the contradiction between family member and professional manager during the evolutionary process. How to bridge these disadvantages of family management to realize build to last has become a major concerned problem. This is not only closely related to the development of the future of private economy, but also directly affect the sustainable development of the national economy in our country. Therefore, it is necessary to clear and definite how to optimize family enterprises’ equity structure and what’s the inner relation to deal problem and explore how to further enhance the holistic enterprise’s value by optimize the equity structure.The thesis was divided into six chapters. The first chapter is research and overview part, which is mainly include research background, propose of questions, research significance, research methods and research ideas. The second chapter contain theoretical basis and literature review, which was divided into three modules. One is to define concept, one is the theoretical basis and the last one contain literature review and chapter’s summary. The third chapter analysis the business process and business environment of ZhengTai Electronics. This chapter’s content mainly introduce ZhengTai Company of Zhejiang Province, the business transform progress and analysis the business environment. The fourth chapter analysis the motivation and path to implement equity incentive of ZhengTai Company. The sixth chapter is conclusion and suggestions. To be a summary, ZhengTai of Zhejiang Province optimize the equity structure constantly by equity incentive. The company combined the profit of employee and enterprise directly, enhance employee’s positivity and promote the whole enterprise’s competitiveness. At last, ZhengTai realized transformation of family enterprise successfully. The research conclusion of this paper has important reference significance to the family enterprise who is still in confused or bottleneck period.