Family Business Equity Concentration And Business Performance

Family business as the booster and indispensable important power of China's economic development and economic structure adjustment,some of the problems in the process of development faced become the core of our research into topics.The perfect modern enterprise system,and constantly expand the scale of the group of listed companies and the process,research on ownership structure and business performance gradually got the attention of more people.The theoretical circle has a lot of research on relationship between ownership structure and business performance,the obtained conclusion,however,each are not identical.On the basis of literature review,from one aspect of equity structure,the perspective of ownership concentration,based on the theory of corporate governance,in the same industry in the Country Garden Holdings Co.LTD and Hopson Development Holdings Ltd.as the research object,using case study method,through the contrast analysis,to explore the different ownership concentration affects the business performance of the mechanism,as well as the ownership concentration and performance of the business relationship.First of all,starting from the corporate governance problems faced by the family business,such as,single property right structure,the joining together of two rights and managers' behavior,aiming at the problems,based on the trust-agent theory and theory of two rights separation,develop the research framework of ownership concentration through the company's governance mechanism to realize the impact on the company's business performance.The study found that:1.In an increasingly competitive capital market,for family enterprises,relatively decentralized equity structure is more advantageous to the enterprise steady development than the highly centralized shareholding structure,can make the enterprise go further stronger;2.Different ownership concentration affects the different corporate governance mechanisms,specific impact on the implementation of business performance from the aspects of incentive mechanism,regulatory mechanism,diversification strategy and separation of powers.Finally comprehensive research conclusion above,make a suggestion that help the family business sustained and steady development:1.Optimizing equity structure,establishing diversified equity checks and balances;2.Family-based governance;3.Equity incentive of professional managers.