Research On Corporate Governance Effect Under Dual-class Share Structure

With the rapid development of the Internet era,Internet technology companies have emerged.The development of emerging industries such as Internet technology-based enterprises is indispensable and requires a large amount of investment from the previous period.This makes it necessary for the company to conduct equity financing while maintaining a certain asset-liability ratio,and excessive equity financing can easily lead to equity.Dilution brings the issue of control contention.At the same time,many Internet technology companies in China have chosen to adopt the dual-equity structure system to design overseas listings,resulting in the loss of a large number of high-quality enterprises in China,such as Alibaba,Baidu is a typical representative.In addition,on April 24,2018,the Hong Kong Stock Exchange's Article 119 Amendment to the Main Board Listing Rules clearly stipulates that companies with different voting rights structures will be allowed to go public in Hong Kong,which marks a dual shareholding.For the first time,the structural system has been accepted by China.The next step will be to consider whether to introduce the equity system in mainland China.According to the current development trend of the dual equity structure and the demand for the system,the author believes that studying the effect of the system on corporate governance is particularly important.Therefore,this paper first defines the concept and applicable characteristics of the dual equity structure,and then combs the relevant literature and theoretical basis at home and abroad.Then the paper further analyzes the impact mechanism of dual ownership structure on corporate governance effects,and analyzes the personal characteristics of managers,enterprise characteristics,industry characteristics and corporate territorial systems.Furthermore,by combining the case company of Jingdong Group,the governance effect of the dual equity structure on Jingdong Group is analyzed in detail.Through the introduction of the case company,and using the event research method to analyze the stock market reaction of Jingdong Announced the construction of the logistics sub-group under the dual-equity structure,and combining the financial performance results of Jingdong under the dual-equity structure,analyze the effect of the dual-equity structure on JD's governance and potential and objective risks exist,then propose relevant countermeasures for risks.In addition,the dual shareholding structure is combined with the hot topic of the state-owned enterprise mixed ownership reform in China,and the system is used for reference and enlightenment of the reform of state-owned enterprises.Finally,this paper summarizes and forecasts the above research and analysis.On the one hand,it hopes to enable readers to view the dual equity structure system more clearly and objectively.On the other hand,it also hopes to provide more reference for enterprises that will adopt the system.reference.