An Optimization Research On Company Governance Structure Of Company Z Based On The Life-cycle Perspective

Family business is one of the oldest forms of enterprise.Due to the family cohesion,family business can meet the challenges and overcome difficulties brought by changes of the environment.In China,since the reform and opening up,three decades' rapid growth has made China's family business a crucial part in national economy,and also an active and prospective one to propel further economic expansion.Nevertheless,many family enterprises run into failure before growing up or show a trend of short life cycle.Having reviewed corporate governance theories and enterprise life cycle theories,this paper defines the concept of family enterprises governance mode and put forward a standard for life cycle stage.The life cycle of family enterprisecould be separated into four stages: Carve out,Growth,Mature and Wane.On the basis of life cycle theory and the theory of corporate governance,through analyzing the characteristics of the family firm in the different developing stages of the various stages,this paper summarizes the family business problems.Family enterprises mostly adopt the model of flat-styled management and flexible human resource management in Carve out Stage.The characteristics of these governance structures will change with the enterprise in different life cycle stages.Equity structure more tends to be more open and governance structure tends to be more complete.And on the basis of comparative analysis,this paper compared the foreign family enterprises with local enterprises and summarized the Chinese family business development experience.Company Z,a typical Chinese family enterprise,shows representative characters in each development stage.ChoosingCompany Z as the research object,by studying the Company Z's experience,this paper put forward a corporate governance mode of the life cycle which could be applied in Chinese family enterprises.The innovation of this paper lies in:(1)Through the analysis and comparison,this paper declares the three stages of family business which match with the family business governance structure,and improve the governance structure in different stages of the selection mode in accordance with the management of contingency theory;(2)From the specific case of inspection,which proves the choice of the mode of rationality,this paper sums up the experience of family business,providing suggestions,for similar enterprises operation in the development process.