Research On The Influence Of "De-Familization" Timing Selection On Enterprise Value

With the gradual development of family enterprises,they are often prone to problems such as unclear property rights and sloppy management brought about by family operation,which hinder the further development of family enterprises,so de-familization becomes an option for the sustainable development of family enterprises.However,the short history of development of domestic family enterprises and the lack of practical and historical experience,as well as the peculiarities of Chinese culture and the domestic market,make it difficult to develop localized empirical theories rapidly,resulting in most family enterprises being deterred from intergenerational inheritance.Therefore,the issue of when to de-familize,how to arrange the de-familization inheritance,and how to develop after de-familization are of great significance to the inheritance development of family enterprises.This paper selects the perspective of timing of de-familization,explores the timing of defamilization by analyzing the main problems faced by de-familying,and on this basis,draws conclusions related to the arrangement of de-familization.Subsequently,the impact on corporate value is discussed based on the de-familization arrangement of the case company,and the match between de-familization and inheritance development is discussed based on the issues formed in the theoretical analysis and the case study,and finally conclusions are drawn regarding both the timing of de-familization and changes in corporate value.The study shows that the timing of de-familize will affect the value of the firm and the path of influence is how well the decisions are arranged in the run-up to de-familization.If the timing of de-familization is too early and the corresponding management reforms as well as coordination arrangements are not completed,it will lead to a decrease in enterprise value,causing de-familying failure or even enterprise failure;if the timing of de-familization is too late,it may also lead to a decrease in enterprise value,de-familization may have too much resistance or lack of necessary financial support.The change of enterprise value in the process of defamilization is a dynamic process rather than a static result,so the timing of de-familization will affect the enterprise value after de-familization.The relevance of the decision arrangement of timing choice and the goal of inheritance development will also affect the sustainable development ability of the enterprise after de-familization,in other words,the match between the timing of de-familization and the development of enterprise inheritance is connected through the enterprise value.In fact,de-familization is also a process of corporate socialization,which requires a purposeful and planned promotion with the corporate interests of survival and development rather than family interests.In order to implement this decision,companies need to be financially strong and forward-looking,while remaining cautious and organized.