Shareholder Heterogeneity,Dual-class Share Structure And Company Perpormance

Capital is the key factor to maintain the survival and development of a company.Listed financing has many advantages,such as it can raise the visibility of the company,enhance the competitiveness of the company,and raise funds without aggravating the financial leverage.As a result,many companies use it as a preferred method of financing.But,in the current " equal shareholder-right" system background,once the company adopts the public financing method to raise funds,the control right of the founder's team is diluted inevitably.It could even be evicted from the company by outside shareholders because of loss of the control right.On the one hand,money is the "blood" of a company.On the other hand,the company's stability and long-term development cannot be separated from the management of the founder's team.To solve the contradiction between them,A growing number of companies are experimenting with equity structure innovation,in the process of public finance,trying to innovation a new shareholding structure to maintain the control right of the company.This is the background of dual-class share structure.Based on the literature review,this paper firstly adopts the method of theoretical analysis,analyzes the shareholder heterogeneity and influence of dual-class share structure on the company's performance.Secondly,adopting the case study method,using Alibaba group(NASDAQ:BABA)as the study subject,the reasons and the process of the IPO of Alibaba has been analyzed.Thirdly,set the "partnership system" of dual-class share structure as the specific object of this case study,this paper makes a detailed interpretation of the IPO process,the change of the shareholding structure and the relevant information of the partner system itself.On this basis,Select the industry classification of American capital market to belong to the same industry as Alibaba,but companies that don't have a dual-class share structure,using descriptive statistical analysis method,the development situation of Alibaba is compared with that of the same industry company which has not adopted dual-class share structure.The study finds that the partnership system has a positive effect on the performance of the company.Finally,based on the foregoing research,this paper puts forward some countermeasures and suggestions on the implementation of dual-class share structure in China.Through the analysis of the partner system,this paper argues that the heterogeneity of shareholders is an objective fact,which affects the theory and practice of ownership structure.Equity structure innovation based on shareholder heterogeneity may be more in line with the company's development needs.The company used in the process of rapid development of the dual ownership structure can reduce the pressure on the company capital while guarantee the team for control of the company founder,thus make the company under the control of the founding team,achieve long-term stable development.Based on shareholder's heterogeneity,dual-class share structure and the structure of the impact on corporate performance as the research into perspective,which enriches the theoretical research of shareholder's heterogeneity and dual-class share structure;On the basis of case study,this paper analyzes the impact on corporate performance,and the system obstacles exist in the implementation,puts forward some suggestions,and increases the practical significance of the studying about the dual-share structure.