The Normative Study of Cronyism on Chinese Family Business

In recent years, the family business becomes a hot issue, the family business is playing an important role in the modern economy, but its management question has also become increasingly outstanding, the most prominent question is cronyism in the family business. This article has analyzed the reasons of nepotism from four aspects: the traditional Chinese family culture; trust resources lacking; financing channel´s sole; professional manager´s lacking. And set forth their pros and cons of relationship, and then put forward several measures to regulate family business cronyism.