Research On The Intergenerational Succession Of Co-Chairman System In Family Business

Our country family business have experienced healthy growth in the past 38 years under the reform and opening-up policy's nurturing and cultivating since December 1978.At present,the founders of vast majority of family business close to retirement,It's a major difficult problem to complete the founders' specific assets heritage and how the family retain own control rights.Intergenerational succession is the process covering 5-8 years,researchers had made so much researcher from succession process and the successor selection training.Among them,how to choose a suitable successor is the first important thing to consider heritage.Many foreign family business tend to professional managers' govern,some selected children and professional managers govern together.The key point of the Intergenerational succession success lies in mature family business governance structure,and the control right allocation play an important role in corporate governance mechanisms.One of the important means to prevent and resolve control rights fighting is how to allocate control rights rationally.Foreign listed companies apply balanced ownership structure,control of the company board governance and other governance mecha nisms early.Due to China's capital market started slow,weak legal environment,family business can't well apply established control over foreign corporate governance.Thus,in the occasion of family business intergenerational succession,the research of rational allocation of control rights has high theoretical and practical significance.Based on massive references of domestic and foreign researches,this thesis separately review from three aspects of family business' agency cost,family business intergenerational succession and control theory.Then through the principal-agent theory,corporate control and pyramidal configuration control implementation to theoretical analysis.Then this thesis adopt the research object of New Hope Group Intergenerational succession Co-chairman system,through its basic case,the process of intergenerational succession,the motivation,function and effect of establishing Co-chairman system draw some conclusions.Ownership structure is a prerequisite for the successful implementation of Intergenerational succession;the control right allocation is the core of Intergenerational succession.Accordingly,recommend the family business optimize internal configuration rights,ownership structure and the board design when they are in Intergenerational succession,improve the system of domestic investors legal protection.