Succession,Successor’s Ability And Corporate Performance:Empirical Evidence On Listed Family Firms

As the mainstay of private enterprises, the family firms have been promoting the sustainable and stable development of Chinese economy for more than 30 years. After entering the 21 st century, because of the limited life age and health, China’s first generation of entrepreneurs gradually withdraw from business management, considering succession issue. China’s family businesses ushered in the era of inheritance and succession. It is not only about the family firm’s survival, but it is about the development of private economy in China whether the inheritance will be successful. To this end, it is of practical significance to study the succession of family firms. It comes down to answer the question that who and what kind of person will be the successor. So the successor’s ability can’t be ignored. By using data of Chinese listed family firms from 2008 to 2014, this article tested the successor ability’s impact on business performance. This paper established the regression model, after descriptive analysis and regression analysis, draw the following relevant conclusions:(1)The succession of family firms and firm performance was significantly negatively correlated.(2)The successor’s abilities can improve business performance.(3)Compared with outsider, insider’s abilities can improve business performance more effectively.