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Research on Financial Governance and Inheritance Mechanisms in Family Enterprises

Author(s)

Miao Yu*

Affiliation(s)

Zhejiang Fashion Institute of Technology, Zhejiang, China *Corresponding Author

Abstract

This study focuses on the financial governance and inheritance mechanisms of family enterprises, emphasizing the optimization pathways and mechanisms during intergenerational succession. The objective is to reveal the impact of financial governance structures, financial rights allocation, and incentive constraint mechanisms on the sustainable development of family enterprises. By constructing a research framework that integrates "theoretical framework - dimensional analysis - mechanism design" and employing literature analysis, comparative research, and system dynamics modeling, we deconstruct the financial governance characteristics in the context of family enterprise succession. The findings indicate that the efficiency of financial governance during the intergenerational transition significantly affects enterprise performance, with the core conflict arising between family centralization and modern corporate governance. Optimizing the equity structure, establishing a dynamic financial rights allocation mechanism, and enhancing the incentive constraint system can effectively improve the scientific basis for financial decision-making and risk management capabilities. The results suggest that against the backdrop of digital transformation, family enterprises should build a trilateral financial governance system of "institution - culture - technology" to transition from "rule by man" to "rule by law." This study provides a theoretical reference for intergenerational succession in family enterprises and holds practical value for enhancing the governance system of family enterprises with Chinese characteristics.

Keywords

Family Enterprises; Financial Governance; Intergenerational Succession; Financial Rights Allocation; Incentive Constraint Mechanism

References

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