Research On The Application And Implementation Effect Of Dual-Class Share Structure In Jingdong

With the rapid development of Internet technology companies,the indispensable capital requirements for the expansion of the company have kept the equity financing and control rights in a dilemma.In recent years,cases of contention for control rights due to equity financing have occurred from time to time.As a result,dual-class share structure allows companies to obtain financing without losing control,and has been favored by many companies.However,due to lack of clear recognition of the dual-class share structure in China,a large number of Internet technology companies have chosen to go to the US to go public and adopt dual-class share structure.This article adopts literature induction method,case analysis method,comparative analysis method and other methods.First,this article introduces the related theories,implementation methods,structural features of dual-class share structure,and the development status in United States and China.Second,it summarizes the development and performance of JD.com,Inc.,analyzes the reasons are related to the personal authority of founders,the demand of founders for controlling control,and investors' trust in the founder team;potential risks are emerging in the founder's shareholders,institutional shareholders and supervision.Then,it clarifies the application of dual-class share structure in the Jingdong Prospectus,showing that the founder obtained 83.7% of the voting rights with 23% of the shares through a dual-class share structure design,thereby controlling the company at the shareholder level.Due to the protection of dual-class share structure,the founders also have an absolute right to speak in the board of directors through the shareholder agreement.Next,the article describes the changing data of the proportion of shareholding,voting rights of the shareholders in investment returns after the company's listing,which shows(1)The company's strategic decision-making results are reflected in financial indicators,which includes higher asset growth rate and turnover rate?faster inventory turnover speed?higher revenue growth and sales gross interest rate?rising ROE.The financial data reflects the company's good development trend,indicating that dual-class share structure will further promote the implementation of the company's business strategy after ensuring corporate control rights,and will be beneficial to the long-term development of the company.(2)Dual-class share structure can not restrict share fluctuation,which may cause speculative shareholders to arbitrage and reduce shares,resulting in decentralization of shares.At the same time,the increasing shares of investment shareholders aggravate the risk of control.The end of the paper summarizes the implementation effect of dual-class share structure and puts forward some related suggestions.Jingdong's implementation of dual-class share structure is conducive to stabilizing the company's control and maintaining the company's continuous development and human capital advantages.The paper also puts forward some suggestions on the implementation of the exit mechanism,supervision mechanism and the degree of trust of the shareholders,which can provide a reference for the enterprises that intend to use dual-class share structure to be listed in the future.