The Second-generation Of Family Business Succession And Cash Dividends Distribution

As a ubiquitous form of business organization,family business has attracted more and more attention from all walks of life.As the founders of the family generation gradually enter the twilight years,the family business has also ushered in the peak period of intergenerational inheritance.After the second generation of the family participates in the management of the enterprise and gradually becomes the key decision maker of the enterprise,it has become a question worthy of consideration about what impact it has on the value and strategic decision of the family enterprise.Compared with non-family businesses,the control of family businesses is in the hands of natural persons or families.Due to the different nature of the controlling shareholders,there are also significant differences in their interest claims,which in turn have a certain impact on the family company 's cash dividend policy,but scholars have relatively few studies on the relationship between family generational inheritance and cash dividends.Therefore,this article takes the first-generation and second-generation family companies as samples to discuss the impact of family-generation intergenerational inheritance on cash dividend distribution;and the relationship between second-generation heirs with different background characteristics and corporate cash dividend distribution after second-generation succession.This paper combs and summarizes the relevant literature on the definition of family business,family business intergenerational inheritance,background characteristics of executives and corporate behavior,and family company cash dividends.Based on this,relevant research hypotheses are put forward.Empirical analysis is carried out on the sample data of 515 first-generation and 183 second-generation family businesses in Shanghai-Shenzhen A shares from 2010 to 2018.According to the empirical analysis results,this article draws the following conclusions: First,the succession of the second-generation family members is negatively correlated with corporate cash dividend distribution;Second,the overseas experience of the second generation of the family,and the related professional background characteristics of finance,finance and management all have a significant negative impact on the cash dividend distribution of the family business.This paper hopes to enrich the research on related issues such as family corporate cash dividend distribution and intergenerational inheritance,and provide some reference and ideas for the survival,development and second-generation training plan of family businesses that are experiencing or are about to face intergenerational inheritance.