The Influence Of "Brother Partner" Governance On The Enterprises And Its Mechanism Research

In China,the culture of family is undoubtedly the most important among the many traditional cultures.Under the culture of family,brotherhood is essential.In China,there is a literary quotation of thousands of years ago saying that brothers with the same mind may negotiate any toughness.In the 1950 s and 1960 s,under the policy of encouraging births,couples often gave birth to more than one child.People born in that period were of the age of getting married and starting careers during the time of vigorous development of private enterprises in China after the reform and opening up.Therefore,after the reform and opening up in 1978,it was common that brothers worked together for entrepreneurship.Business partnerships of brothers thus became significant forces in the business world of the time.There have been a large number of examples of brothers working together to start a business in society.From the traditional primary industry to the currently popular tertiary industry,enterprises of brother partnerships are everywhere.Pitifully,the immediate impression of people on enterprises of brother partnerships may still remain as the small,unlicensed,or even illegal workshops.Some experts believe that although brothers are close relatives,the production and management model of business partnerships of brothers is not in line with the governance principles of modern enterprises.However,there is a saying that what is existent is reasonable.Although the enterprises of brother partnerships are usually small in scale and far from being well-known,there are also many successful enterprises of brother partnerships that have become listed companies.For instance,the movie industry giant Huayi Brothers founded by the brothers Wang Zhongjun and Wang Zhonglei,Guangdong Highsun Group founded by the brothers Shao Jianming and Shao Jiancong,Yonghui Superstores founded by the brothers Zhang Xuansong and Zhang Xuanning,China CIFCO Investment in the charge of the brothers Jiang Rong and Jiang Xin,and Zhejiang NHU founded by the brothers Hu Bopan and Hu Boyan,etc.There are many examples like the above ones in China's capital market.In this paper,in terms of the theories,the theories of society,emotion,and wealth are taken as the starting point,and agency cost and R&D investment are taken as the intermediate variables of evaluation corporate performance;the impact and intrinsic mechanism of governance by partnership of brothers on corporate performance are analyzed to enhance the understanding of the corporate performance under governance by partnership of brothers.In particular,first,a review of the literature is presented on governance by partnership of brothers,the relationship between governance by partnership of brothers and corporate performance,and the theories of society,emotion,and wealth;second,the relationship between governance by partnership of brothers and corporate performance and the intrinsic mechanisms is analyzed,and the research hypothesis is put forward based on the theoretical framework of society,emotion,and wealth.In terms of empirical research,empirical test and analysis of the theoretical assumptions of governance by partnership of brothers and corporate performance are conducted through relevant measurement methods by taking the listed private enterprises from 2003 to 2017 as the samples;in the end,the corresponding suggestions for improving the governance of enterprises of brother partnerships are put forward based on the results of empirical analysis,The theoretical and empirical findings of this paper include the followings.(1)Corporate performance is positively related to governance by the partnership of brothers;compared to enterprises of other types,enterprises of brother partnerships have better financial performances.(2)Governance by partnership of brothers significantly reduces corporate agency costs,thereby improving corporate performance.(3)Governance by partnership of brothers significantly reduces R&D investment and reducing R&D investment improves the business performance of the current period.(4)According to the verification procedures of mediation,it is found that agency costs and R&D investment play partial mediating roles in the influence path of governance by the partnership of brothers on corporate performance.The innovations in this paper are reflected in the followings.In this paper,first,starting from the brotherhood of the actual controllers of the enterprises,the relationship between governance by partnership of brothers and corporate performance and their intrinsic mechanisms are explored and studied to contribute to the researches on the governance efficiency of control and participation by relatives of different relationships in corporate management;second,the intermediary roles of agency costs directly affected by corporate governance and R&D investment that represent the willingness to innovate in the influence path of corporate governance on performance are taken into consideration based on the theories of society,emotion,and wealth,to explore the impact of governance by partnership of brothers on corporate performance in a more comprehensive and innovative perspective;third,by associating the theories of society,emotion,and wealth with governance by partnership of brothers,the variety of research objectives of the theories of society,emotion,and wealth is enlarged,and the application range of theories of society,emotion,and wealth is broadened;fourth,through an in-depth analysis of the governance by partnership of brothers,this paper complements the academic research on the governance by partnership of brothers and enriches the relevant existing research literature on corporate governance.