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Case Study On The Control Allocation Effect Of Family Business From The Perspective Of Lonsen Inheritance

Posted on:2020-12-26Degree:MasterType:Thesis
Country:ChinaCandidate:K TengFull Text:PDF
GTID:2439330620459367Subject:Business management
Abstract/Summary:PDF Full Text Request
Chinese family businesses have entered the peak period of inheritance and more and more problems of inheritance have been exposed.Most of the relevant studies in the literature focus on the impact of concept conflicts and resource differences between the first and second generation of the family on enterprise performance,while relatively few studies have been conducted on the impact of the competition for control rights between the second generation of heirs on family business in the process of inheritance.This paper attempts to analyze the influence of allocation of control rights on the performance and value of family enterprises by taking the competition for control rights between the ruan brothers in Lonsen family inheritance as an example.This paper makes an in-depth analysis of the transfer of control rights between generations in Lonsen,and the main course and major events of ruan brothers' competition for corporate control rights,and studies the influence of different changes of control rights on corporate performance and stock price,as well as the reactions of stakeholders through the Event Study.It is found in this paper that in the early stage of intergenerational transmission in Lonsen,the turnover of the chief executive,the conflict of control rights between the second generation of the family and the wait-and-see attitude adopted by the stakeholders will lead to a certain negative impact on corporate performance,stock price and market reaction.Later,with the gradual clarity of control rights,the second-generation successors can give play to their talents,the market eliminate doubts,and corporate performance has been significantly improved.For Lonsen family inheritance research,this paper highlights the control arrangements in the role of intergenerational inheritance,and inheritance has a certain reference significance for family enterprises: one is to respect the objective laws of family enterprise control effect,especially the control on the inside of the members of the family configuration should be centralized or decentralized as far as possible,avoid control is evenly distributed on several main members of the family;Second,the successor should be selected and made clear in advance to reduce the possibility of competing for control rights during the succession,which is also conducive to the running in of the two generations of leaders in business ideas.Third,it is necessary to face up to the corporate attributes of family enterprises.It is difficult for a family enterprise that emphasizes the maximization of family interests or pays too much attention to the fairness within the family to achieve long-term development.
Keywords/Search Tags:Lonsen, Family enterprises, Inheritance conflict, Control Allocation Effect
PDF Full Text Request
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