Professor Zhu Hang from the School of Business Wrote Preface for China Family Business Review

Headed by the Chinese Academy of Social Sciences and sponsored by China Business Journal, China Family Business Review magazine is the first media in China to focus on the risk and crisis management and sustainability during the transfer of actual control rights in family enterprises. Recently, Professor Zhu Hang from our school wrote the preface for China Family Business Review magazine issued in September 2019.

In the preface by Professor Zhu Hang, he started with the issue of "great loss of wealth in the process of inheritance encountered by Chinese family enterprise", setting aside the traditional view of studying the issue which is "the resources inheritance and individual ability from the perspective of successors", and shed a different light on the issue from the perspective of "managers' agency problems".

Professor Zhu believes that analyzing from the perspective of managers can better understand the causes of agency problems. As the older generation of entrepreneurs’ ages, the managers who follow them tend to be in high positions in the enterprise, well-paid, comfortable with the familiar management system and working method, and are not aggressive enough. The lack of initiative of the management can easily lead to a decline of competitiveness of the entire enterprise. And the new generation joining the enterprises may intensify these existing problems.