Research On The Authority Of The Founder And The Value Of The Company

With the increasing support for all economic development and the gradual reduction of policy control,small and medium-sized private enterprises have grown up rapidly in this context,and there are a large number of founders in private enterprises.In the founders' enterprises,the founders,who own the ownership of the company and participate in the operation of the company,are the core figures in the management decision of the enterprise.The founders' unique skills,rich experiences,social status and broad connections made the founders play an important role in the strategic decision of the company's investment and financing.In the process of the establishment and growth of the enterprise,the founder's unique authority is the source of these effects.Therefore,the analysis of the founder's influence on the value of the enterprise from the perspective of the founder's authority will help the scholars to know more about the mechanism of the founder's role in the value of the enterprise.This paper focuses on the formation of the founder's authority in the process of the development of the founders of small and medium-sized private enterprises,and its role in the value of the enterprise and the extent of its function.This paper selects the founders of small and medium-sized private sector listed companies in-2014 in 2008 as a sample of this study,with a total of 1471 observations.Using the method of combining theoretical analysis with empirical analysis,we can measure the effect of enterprise value from the perspective of Founder authority.Founder authority includes shareholder status authority,position authority,expert authority and extraordinary charm authority.The theory of principal-agent,irrational economic man,higher echelon theory and relational contract hypothesis are used to study the effect of the different authority of the founder on the value of the company.The empirical study found that the founder's shareholder status authority has a positive relationship with the company value,the founder's authority and the company value are inverted U.The relationship between the founder's position authority and the company value is not significant.Further discussion shows that the founder has ownership authority and position authority at the same time.It is not conducive to the promotion of the value of the company.Based on the results of empirical analysis,the following four suggestions are put forward:first,set up a reasonable ownership structure.Higher equity means a higher decision-making power to ensure that the founder's core decision-making power is not shaken.Second,in the appropriate period,the introduction of the new era of outstanding talents;third,to improve the internal governance environment of the company.Independent directors should do their duty conscientious and conscientious,strictly supervise the behavior of executives and controlling shareholders;fourth,convert the implicit contract of the individual level into the enterprise level contract and reduce the loss to the enterprise when the founder quit the enterprise stage.The research content of this paper enriches the empirical data about the influence of the founder's authority on the value of the company,and also provides guidance for the private listed companies of the small and medium-sized listed companies to smoothly pass the difficult times of the change and transfer of the managers to ensure the sustainable development of the enterprises.