Family Business Inheritance Performance Evaluation

Since the reform and opening up for more than 40 years,private enterprises have achieved a huge leap from scratch,from small to large,from weak to strong,and become a strong driving force for the sustained growth of national economy,the upgrading and transformation of industrial development,the continuous progress of technological innovation and the continuous improvement of comprehensive national strength.According to statistics,most of the private enterprises are family run.Because of the growing age of the "first generation" in China,more and more second-generation entrepreneurs take over the burden of their parents.In the next 10 years,the trend that the first generation entrepreneurs of private enterprises transfer their rights to the second generation entrepreneurs will enter a peak.Whether the family business can succeed in inheritance is not only related to its own interests,but also closely related to the overall operation and prosperity of China's economy.This paper interprets the definitions of "family business" and "intergenerational inheritance of family business",summarizes the principal-agent theory,modern housekeeper theory and entrepreneur social capital theory,and concludes that the most basic and essential element of family business inheritance is the inheritance of management right and ownership.In view of the current industry distribution and the geographical distribution of high net worth families,this paper analyzes the differences between the two generations of entrepreneurs in behavior characteristics,personality characteristics,education background and hobbies,and finds the reasons for the different governance styles of the two generations of entrepreneurs.Taking the case company Dayu water conservation inheritance event as the object,this paper analyzes the enterprise value changes of the case company in the whole inheritance event,including short-term performance evaluation and long-term financial and non-financial performance evaluation.Through the analysis,this paper draws the following conclusions:(1)good tripartite relationship(inheritors,successors and executives)plays an important role in the inheritance effect of the whole enterprise.(2)Inheritors make enterprise inheritance plans in advance,which is conducive to preventing the enterprise fromtrouble and stabilizing the enterprise value.A good successor training plan can promote the successors to play their role faster after taking over.Based on the influence of the smooth inheritance of Chinese family businesses on the overall economic environment,this paper chooses the family inheritance event of Dayu water saving Co.,Ltd.as the research theme.I hope to collect and sort out the event days and the experiences of the two generations of entrepreneurs who have achieved family leadership status through the case of single family business inheritance,and draw relevant conclusions and enlightenment through the evaluation of their inheritance performance,so as to enrich the case events and academic research of family business inheritance.