TITLE:
A Survey of Internal Governance in Family Business
AUTHORS:
Qi Lin
KEYWORDS:
Family Business, Internal Control Supervision
JOURNAL NAME:
American Journal of Industrial and Business Management,
Vol.8 No.4,
April
30,
2018
ABSTRACT: Family
businesses play an important role in the global economic environment. In China,
more than 90% of them use family management or family organization. This shows
that family-owned companies are playing a decisive role in China’s economy.
However, with regard to the current development situation, the development
status of family-owned enterprises is not optimistic, and the average life
expectancy is only 5 years. Facts have proved that internal governance is the
key point for the steady development of family-owned enterprises. Internal
governance supervision, as an important component of the five elements of
internal control, is related to whether the internal management of a
family-owned company can be implemented steadily and effectively. Therefore, a
sound internal governance supervision system is the key point for whether the
family business can survive in the modern economic competitive environment.
This review points out the disadvantages of the family business and points out
the new direction for the follow-up family business research that applies to
the internal governance supervision model of the family business.