| The financial performance of a listed company is closely related to the shareholding structure.The shareholding structure is an important factor that can affect the company 's financial solvency,profitability,growth ability,and other financial indicators.The large amount of external funds that Internet enterprises in the early stages of development will cause the founder team's control to be diluted,and even cause them to lose control of the enterprise.If dual-class shares are implemented,it can solve the dilemma of the founder team losing its control status in the Internet enterprise.The founder's team focuses on the long-term development of the company,so that firmly grasping the control of the company is conducive to improving the company's decision-making efficiency,preventing the company from being maliciously acquired,etc.,which will directly or indirectly affect the company's financial performance.However,dual-class shares also have drawbacks.This is one of the reasons why it cannot be implemented in China.That is,the implementation of dual-class shares' companies in the hands of the founding team will breed increased entrusted agency costs,damage the interests of small and medium shareholders,expose moral hazard and weakening internal and external supervision mechanisms and other issues.In order to better study the impact of Internet enterprises ' dual-class shares on the company's financial performance,this article expounds relevant domestic and foreign literature and theoretical basis,and uses financial analysis indicators,Tobin's Q value and ROE through qualitative analysis and quantitative analysis,comparative research method value is to study the financial performance of Xiaomi Inc.before and after the implementation of dual-class shares.This article concludes that the implementation of dual-class shares have a positive impact on Xiaomi's financial performance and is conducive to the long-term development of Xiaomi Inc.At the same time,the implementation of dual-class shares require attention to enhance management capabilities,protect the interests of small and medium investors,and limit its scope of use.At present,China has not introduced dualclass shares,which has caused high-quality enterprises such as Alibaba Group,JD,and Baidu to be forced to go abroad to list,causing incalculable economic losses in China.It is hoped that the research on dual-class shares in this article will give you some inspiration and thinking,and it will help to improve the deficiencies of the Chinese Internet industry in the field of dual-class shares. |
