Sociemotional Wealth In Family Firms:How To Choose Capital Structure

With the reform gradual deepening and the market economy gradually advancing,a large number of private enterprises and private entrepreneurs to take out the vast majority that are controled by the owners and their family and play a very important role in the socialist market economy.But in reality,families do not necessarily control only one enterprise,and even some actual controllers,individuals under the name of a number of listed companies to control,then they are for all enterprises are treated equally?With the socioemotional wealth theory,we know that entrepreneurs tend to pour more emotion into their own businesses and give more emotional wealth to them,including more personal and family influence,stronger inheritance expectation and more social responsibility.By means of figurative rhetoric,we can compare the enterprises trained by hand entrepreneurs to "biological" subsidiaries,the acquisition of the company with respect to the actual controller can be likened to "adopt" to the subsidiary company.From this point of view,finishing the collection of A share stock market with an actual control of the data at the company name,found only in the A stock market,there are at least 87 or the actual controller also has at the same time to control the number of listed companies.they are distributed in all walks of life type,but also provides data for this research.Based on this,and guide by socioemotional wealth theory,this paper analyzes the differences of social emotional wealth between the same controller and the enterprises which are listed and acquired by hand.Specifically,first of all,the literature review of family governance and the choice of enterprise capital structure and the theory of social emotional wealth are reviewed;secondly,based on the literature,the use of social emotional wealth theory as the theoretical basis,further from the theoretical analysis of culture differences between listed companies and the acquisition of the enterprises to choose the enterprise capital structure and debt maturity choice and its intrinsic mechanism,and put forward the research hypothesis;then,Collecting the relevant data of private enterprises listed in China from 2010 to 2015.Finally,rely on the results of empirical analysis,corresponding policy recommendations are put forward.The theoretical and empirical research results show that:(1)for the same actual controller,the direct training of listed family enterprises has a lower debt to equity ratiothan the acquired enterprises.This is often because the controller in order to achieve long-term control of family business and heritage goals,and The family uses its owner's identity to drive firms to take risk averse attitudes in the face of risk decisions.(2)direct training of listed family firms will result in more long-term liabilities and non current liabilities than corporate liabilities.(3)After controlling other conditions,the enterprises that enter the inheritance will pursue lower risk commitment and debt level than those who have entered the inheritance.The main innovation of this paper lies in: first,the research and practice at home and abroad that for the socioemotional wealth theory has been the development of relatively mature,but the research that for corporate governance,especially the study of capital structure and debt financing are based on the analysis of family involvement and family member participation,without contrasting the influence of different enterprise heterogeneity on capital structure and debt financing maturity structure under the same actual control.Secondly,based on the research methods to "adopt acquisition" and "cultivate listed(biological)" to represent the family's social emotional differences in wealth,further analysis of the social emotional wealth financing impact on family enterprise,innovation in research perspective and methods.Finally,according to the empirical analysis,it is concluded that the actual controller has different affective differences and the expected differences of intergenerational succession between the listed companies and the enterprises that have been acquired,and the financial effects that may arise on this basis.Furthermore,this paper explores the reasons for entrepreneurs' differences in corporate governance,and also helps to understand the reasons for the formation of different types of family businesses.