Strategic Motivation And Effect Evaluation Of The Choice Of Inter-Generational Transmission Of Family Firms

As a very typical enterprise organizational form,family business has been developed for many years.Founded in the British Industrial Revolution,the family business has been more than 150 years,from scratch,from small to large.It plays an important role in the country's economic development and social employment.The family business of our country has been developing rapidly since the reform and opening up.In the last twenty or thirty years,the family business has become an indispensable driving force for China's national economy.At the same time,China's first generation of family enterprise also gradually began to the inheritance of the enterprises.One of the important reason for family business founder to persevere is to make their family business can smoothly complete heritage.However,"rich,but three generations" has become the fate and labels of most entrepreneursFocus on the fact that family enterprises of our country generally adopted "inherited his father's" to heritage enterprises,this paper selects the intergenerational inheritance case of Guangsha Group Holdings Co.,Ltd.(hereinafter referred to as Guangsha holding),to discuss and evaluate the strategic motivation of "inherit his father",so that to explain the reality of our family enterprises' " inherited his father's " heritage model,and to help the family business to choose the family business succession model.The main research methods of this paper are: literature research method and case analysis method.Literature research method includes two steps,namely,the collection of literature and analysis of the literature.Specifically,this article strats from the collection and collation of the family business heritage related research literature,then research and analysis of the relevant theoretical model tied to show the main factors affecting the family inheritance.On this basis,the paper choose the case of Guangsha holding for case study.In the whole,the paper concludes the introduction of the Guangsha holding,the inheritance implementation way of Gunagxia holding,the strategic motivation of choosing the "inherited his father" way to inherit,and the evaluation of inheritance effect in a view of accounting.As a necessary process for the generation of family business,intergenerational transmission is also an important opportunity for enterprises to adjust the direction of development,and to reunite the competitiveness.In general,the degree of satisfaction of the main stakeholders is an important criterion for evaluating the success of the intergenerational transmission of family business,but in addition,the more important criteria is enterprise performance.It can be said that only after the completion of intergenerational transmission,corporate performance can improve or stabilize at a certain level,the intergenerational transmission is considered a success.Through the comparison of the financial performance of enterprises before and after the inheritance,this paper concludes the research findings and implications to the analysis of the basis of the analysis.Guangsha holding the "succession" has a lot of Chinese family enterprises' typical characteristics of inheritance,such as "inherited his father's","double inheritance",and founder manipulates the business behind the scenes.Guangsha holding heritage began in 2002,before and after the inheritance for up to ten years.Through the middle,the founder of the business came back to save the business among crisis.In Guangsha holding the inheritance case,Lou Zhongfu started the inheritance in a time that the business is facing a significant adjustment of enterprise development strategies,transition from construction to real estate business.This directly influences the inheritance process.In addition,in the face of "dual inheritance" and other complex inherit environment,Lou Zhongfu did not develop a specification of a succession plan,and there is no established family constitution,these have become the hidden danger of intergenerational inheritance of Guangsha holding.Based on the analysis of Guangsha holding intergenerational transition effect,this paper argues that in the time of developing a major strategic,it is not suitable for corporate heritage.Guangsha holding inheritance started in a time that it is facing a significant adjustment of enterprise development strategy.This is not a suitable time for heritage,which directly became the hidden trouble for transmission interruption.At the same time,due to the lack of professional managers in the process of inheritance,the successor continued the business strategy of the enterprise,made the enterprises trapped into a strategic trap.But to be sure,Guangsha holding "inherited his father's" inheritance pattern objectively to effect the stability of the enterprise.Relative to the external professional managers directly take over,inherited his father's succession plan guarantee the Guangsha holding control can be " calmly " inherited.