HN Family Enterprise Equity Structure Research

With China's reform and opening up, China's family business obtained the unprecedented development in just a few years. Especially in recent years, the family business is becoming a highlight of our country in the process of economic development. At the same time, the ownership structure has been a hot academic research. After the listing of family firms, reasonable allocation of the ownership structure has a direct impact. So this thesis mainly has used the two cases which are the HN family business suspension crisis and the XY company in the same industry, analyzed the problem of ownership structure of family enterprise governance, in order to improve the family business competitiveness and operating performance to make a modest contribution.China's family companies go public through buying a shell, and the family enterprises not only obtaining the social capital, but also controlling the family occupying the interests of small shareholders, so it should be a comprehensive understanding of the equity structure of listed family firms.This paper on the ownership structure research of the listed family enterprise is mainly carried out from the perspective of enterprise life cycle. First of all, the paper set the ownership structure of family business, enterprise life cycle, the theory of the equity structure of enterprises and the family business in start-up period, growth period, mature period which have the different characteristics. In start-up period, the ownership structure is simple, the decision-making is highly centralized; enterprise ownership and management rights become a synthesis. The growth period has the characteristics of decentralized and diversified ownership structure, governance structure improvement increasingly, decision-making power gradually dispersed. The mature period has the characteristics of further diversified ownership structure, ownership and management has been separated further; perfect governance structure, scientific decision-making mechanism. Enterprise life cycle is used from qualitative and quantitative point in enterprises, especially for the HN family enterprise (many connected transactions), simple quantitative analysis cannot ceded business start-up period, growth, maturity and decline period. So this paper combines the analysis to identify the enterprise life cycle of the two cases.This paper uses the HN Enterprises suspension event as an example, and refers to the XY enterprise in the same industry, the ownership structure are compared by analyzing the enterprises from the perspective of life cycle, I think there is no big difference in the early life cycle of HN and XY, but in growing period and mature period equity structure began to change. HN enterprise insists on " only one big share", while XY enterprise appropriately decentralizes the stock-right, which lead the management of the enterprise architecture to a different path.Finally, this paper also put forward the suggestions to solve the problems existing in the enterprise HN. The "only one big share" problem of equity structure of HN is a problem which lots of listed family firms want to solve, I hope companies can take this as a warning, timely make adjustments on their ownership structure of enterprises, construct its unique characteristics of the governance structure, I believe that the family business will go longer.