A Study On The Influence Of The Successor Selection On Capital Structure Of The Listed Family Enterprises

As an important part of China's non-public economy,how family businesses can better manage and develop is a worthy of discussion.At present,China's family-owned enterprises are facing a slowdown in economic growth,falling exports,overcapacity,deterioration of the financing environment,and a transformation crisis in the manufacturing industry as a whole.The founder of the family business has been working hard for years,and the next step is to give the next generation a good foundation.While the external environment is not optimistic,the issue of choosing a successor becomes even more critical and urgent.There are lots of problems challenging the firm founders and worth thinking,how to assign the power between the several family successors,whether adopting the professional managers while there are no suitable family successors,whether the capital structure and governance structure of family firm according to the source of successor.Most existing literature considers the relationship between family successors and professional managers and the return on asset.From perspective of capital structure,this paper carefully studied the differences in the capital structure between the founder as the(FOU),the professional manager as the(PRO),and the family successors as the(FAM).On the basis of reviewing the domestic and foreign literature,this paper puts forward the corresponding research hypothesis,taking the Shanghai and Shenzhen A-share listed family companies as samples from 2012 to 2017,to study the influence of s from different sources on the capital structure of the company.The study found that:(1)The successor of the family as the leadership of the family company will reduce the long-term liability rate,increase the ownership concentration.(2)The professional manager's role as the leadership of the family company has a positive impact on the longterm liability rate,and decreases the ownership concentration.The main conclusions are follow: the key point of the succession of family firm is the selection of the family successor.The priority choice of the founders is the family successor who is willing and capable,however,they usually have few suitable family successor.Whether the founders choose family successor or professional manager,their management will have an influence on the capital structure,founders are required to considering whether the source of firm successor is the accordance with the capital structure and governance structure of family firm.