On Internal Governance Effect Of Corporate Under The Dual-class Share Structure

With the development of the capital market,corporate governance systems are becoming more and more important to the development of enterprises.The control of the founder of the company is constantly diluted due to the listing of financing,and the founders of technological innovation companies pay more attention to this.Therefore,the dual ownership structure system is increasingly favored by technological innovation companies.The dual-class share structure has been popular in foreign countries for a long time.China's capital market is only allowed to be listed on the Hong Kong Stock Exchange by the company in April 2018,and Xiaomi Group became the first case after the reform of Hong Kong's listing regulation.This study not only has certain theoretical implications for the follow-up study of the dual-class share structure in China,but also enriches China's research on equity structure and financing methods,and also promotes the dual-class share structure to better serve the capital market.This paper uses the typical case study method,taking Xiaomi Group as a case to study the effect of internal corporate governance under the dual-class share structure.First of all,the introduction of Xiaomi Group Company,including its basic situation,the dual-class share structure of Xiaomi Group and the internal governance structure of Xiaomi Group.Secondly,the effects of internal governance of the group are analyzed by analyzing the quality of internal governance of Xiaomi Group and the performance of internal governance.The quality of internal governance includes the quality of its shareholding structure and board governance;the performance of internal governance includes an analysis of the group's solvency,profitability,operational capabilities and innovation capabilities.Finally,through the above analysis,the specific effects and experience summary and countermeasures suggestions of the internal management of Xiaomi Group are summarized.Through analysis,it sums up the four positive effects of Xiaomi Group's internal governance: it can alleviate the contradiction between Xiaomi Group's financing and maintain the founder's control;prevent the company from being hostile to the company,which will benefit the company's long-term development;respect the principle of autonomy of will;The original human capital advantage will improve decision-making efficiency.In response to these four positive effects,some experiences are further summarized: technological innovation enterprises should adopt the dual-class share structure listing financing;the implementation of dual equity is a good choice to respect the autonomy of meaning.At the same time,the analysis summarizes the three negative effects of the internal governance of Xiaomi Group: increasing the opportunistic risk and agency costs,the minority shareholders' rights are not guaranteed;it is difficult to find a suitable company heir;the supervision function of hostile takeover is invalid.And give corresponding countermeasures and suggestions: establish and improve the protection system of external investors' interests;establish a restriction mechanism for stock holders with different voting rights;establish a performance appraisal system for management;set up the successor,the excellent training class,and train the group successors.This article takes Xiaomi Group as an example to study the effect of internal corporate governance under the dual-class share structure is a bold attempt.This article creatively raises the issue of conflicts of interest between the founder of the company and the public investors,explores the dual principal-agent relationship between the founders and management of Xiaomi Group and between public investors and management,and explores how to mitigate This contradiction.