The Influence Of Children’s Structure Of Actual Controllers On Enterprise Value In Family Business

Over the past 40 years of reform and opening up,China’s private economy has developed unprecedentedly,more than 80% of private enterprises are family operated,China’s family enterprises have entered the peak of large-scale handover,and it is expected to complete the intergenerational inheritance in the next 5 to 10 years.The smooth handover of family enterprises from generation to generation is not only related to the rise and fall of the family enterprises themselves,but also affects the overall stable development of China’s economy and society.For thousands of years,China’s traditional "family culture" still has a profound impact on today’s society.Therefore,the mainstream trend for Chinese family enterprises to choose the inheritance mode is still "children inherit their father’s business".Based on the theory of internal inheritance of family enterprises,this paper first combs and summarizes the basic concepts of family enterprises,actual controllers and enterprise value,then expounds the meaning of high-order theory,altruism theory,resource-based theory and principal-agent theory in family enterprises,and then summarizes the influence ways of actual controllers and successors of family enterprises on enterprise value through literature review,It is determined that the research content of this paper is the impact of the second-generation successor structure on the enterprise value.The second-generation successor structure is reflected by the child structure of the actual controller entering the family business.Finally,a series of hypotheses are put forward and empirical research is carried out.The listed family enterprises in China from 2015 to 2020 are selected as the research samples,use stata16 statistical analysis software to run the two-way fixed effect model to verify the hypothesis.The following conclusions are obtained:(1)The more children of the actual controller,the more negative impact on the enterprise value.After controlling the gender differences,it is concluded that the more sons,the lower the enterprise value.Similarly,the more daughters there are,the less conducive it is to improve the value of the enterprise.(2)Compared with the fact that the actual controller of the family enterprises has only one child,the family structure with more children has a more significant negative impact on the value of enterprises.(3)The number of children when the actual controller of a family business has only sons has a more significant negative impact on the corporate value than when there are only daughters.The above conclusions have passed the robustness test.Based on the above conclusions,it can provide relevant suggestions for family business owners and external investors,including focusing on sustainable development of family enterprises to enhance corporate value,establish a correct concept of fertility and protect the enterprise value from loss from the root,making long-term planning for intergenerational transmission of family enterprises to reduce internal conflicts as soon as possible,and making reasonable investment decisions to reduce risks.