Research On The Efficiency Of Corporate Governance Based On Dual Ownership Structure

In recent years,with a large number of high-quality enterprises in China choosing to use the dual share structure to list overseas and in Hong Kong,the dual share structure has gradually come into the public's field of vision,which has attracted widespread attention in academic and practical circles.Equity means the right of control,but under the traditional structure of "the same share and the same right",the IPO Financing of enterprises inevitably faces the problem of equity dilution,and the dual share structure can realize the control of the company by separating the cash flow right and the control right of the company.As this mode is not allowed in China,many enterprises are listed in the foreign financial market,forming the phenomenon of "making money at home and paying dividends abroad",which directly causes losses to China's economy.However,in April 2018,the Hong Kong Stock Exchange issued a new regulation to relax the IPO equity structure policy and allow enterprises with dual share structure to be listed,which shows that China's acceptance of dual equity structure is increasing,and also suggests that dual share structure may become a trend.Therefore,it is very important to study the influence of dual ownership structure on corporate governance and to know whether it can improve the efficiency of corporate governance.Based on the fact that more and more high-quality enterprises have adopted the dual share structure in recent years,they have chosen to go to the United States for listing,and there is a boom of Chinese concept stocks going to the United States,this paper studies the efficiency of corporate governance under the dual share structure.The research is mainly divided into six parts,the first part,introduction,mainly introduces the background and significance of this topic,shows the importance of this research topic,leads to the full text.The second part,mainly literature review and theoretical basis,summarizes the relevant theories of dual share structure and corporate governance efficiency,and defines the concept of dual share structure,which is the basis of the following case study.The third part,case introduction,introduces the case of Jingdong listed on Nasdaq,introduces the basic situation of Jingdong and the purpose and reason of using the dual equity structure.The fourth part,from the corporate governance structure and corporate performance,analyzes the impact of dual ownership structure on the corporate governance efficiency of JD.The fifth part analyzes the characteristics and risks of the design of the dual share system in Jingdong.The sixth part is the conclusion and summary of Jingdong case study.Through the analysis,we come to the conclusion that the dual ownership structure improves the corporate governance efficiency of JD to a certain extent and is more conducive to the long-term development of enterprises.However,there are also some disadvantages in the process of dual share design,such as too centralized rights,too tough board meeting rules and so on.These may also have a negative impact on the long-term development of JD.Therefore,in the last part of this paper,some suggestions are put forward for other companies in China who want to choose this mode for listing.