Research On The Relationship Between Family Firm Power And Enterprise Value

The family power’s contribution to the enterprise value creation is the problem that needs to be focused on in the governance of family enterprise. We takes all the family enterprises of the listing corporation as the research object, and analyze the relationship between family ownership, control power and enterprise value. The research results show that the control of the family business to the enterprise value has a positive impact, between family ownership and the value of listed companies exist significant non-linear relationship, family ownership on firm value has positive effect, but at a lower proportion of the family ownership, family shareholders plunder motivation is larger, and the resulting agency problems is not conducive to the creation of enterprise value, so between family ownership and firm value exist U-shaped relationship.First, this article reviews the domestic and foreign literature, from the definition of family business, and discusses the governance of corporate governance and family business, and briefly introduces the current situation of the family Enterprise Inc in China. And then, the research on the distribution of power and corporate performance in the existing literature is summarized, and the relationship between family factors and enterprise value is also analyzed.On this basis, the article analyzes the influence factors of family enterprise power allocation, and puts forward the hypothesis that the relationship between family ownership and firm value has negative effect on firm value, through empirical analysis; the research finds that there is a nonlinear relationship between family power and firm value.This paper discusses the relationship between the family power and the enterprise value, and discusses the reasons of the U type relationship between family ownership and firm value, and puts forward management suggestion on the basis of three aspects: the external environment, the family firm and the power distribution. In the end, the paper puts forward the limitations of the paper and makes a prospect for the future research.