Agency Problem,Equity Restriction And Performance:The Empirical Study On Listed Family Firms

At the modern economic stage of China,private enterprises have played an important role,among which family firms have accounted for half.So family firms have been a strong force in China's economy and its performance is particularly important.Compared to ordinary enterprises,family firms are usually founded by family members,who are strongly connected with each other depending on emotion and culture,and they run the firm together on that basis.With the development of opening and diversifying economy,family firms are on the way to transformation.Professional Managers are introduced to engage in the management,at the same time,the equity of family member has been diluted gradually.However,listing doesn't affect the controlling status of family members.As a result,family firms are facing the challenge of agent problem and equity restriction and thus the performance are influenced simultaneously.Based on the above analysis,this paper takes family firms which list on Small and Medium-sized Board and Growth Enterprises Market as research subject,analyzing the relation between agency problem,equity restriction and performance.At last,the mediating effect of executives resource between equity restriction and performance are also researched.By screening,the paper takes 91 sample enterprises including 455 sets of panel data which meet the conditions from 2012 to 2016.This paper takes the external members of executives as an indicator measuring agency problem and the ratio of external members' holding to family members' holding of the top ten major shareholder as an indicator measuring equity restriction,researching the relation among agency problem,equity restriction and performance.First of all,this paper makes a generalization for relevant literature,and then posing different hypothesis about influence factors to performance depending on relevant theory analysis.In the end,we take descriptive statistics and regression analysis to sample data.At the part of empirical study,all of the samples which are divided into different groups by executives resource and equity restriction are analysed.By regression analysis,we find that there is a positive correlation between the external members of executives and the performance of Chinese family firms.Similarly,the relation between equity restriction and performance is also positive.In addition,this relationship is no longer significant after executives resource being introduced and the correlation index gets decreased.So,we think the external members of executives plays mediating effect partly betweenequity restriction and performance.The paper wishes the analysis could offer some useful advice for modern family firms,both at the running and the management.