In China, the family business usually implement paternalistic management model at the startup. When the enterprise scale enlarged, along with the change of the outside environment, the risk and uncertainty of the enterprise management will be increased and the distortions of family management model will become increasingly clear. Therefore, it is an irresistible trend to carry out reforms on the family business governance model. This paper analyzed the current status of Chinese family management model, pointed out the opportunity under the market economy for family business accelerating its development, and summarized the four models of Chinese family business governance. Currently, under the market economy, the biggest problem faced by Chinese family business is not how to transform into modern enterprise, but how to realize their sustainable development. To build a modern enterprise system is just an important destination for family business development, but can’t be the only choose at the present stage. A precisely suitable enterprise system is established according to the time, place, different industry, scale, development stage and background, while there is no standard model of universal application.
Legal Origin and Corporate Governance for Chinese Family Business: Evidence in Hong Kong, Taiwan and Mainland China
