Research On Corporate Governance Effect Of Dual Ownership Structure

The balance between the company’s financing needs and management’s control is a significant problem in corporate governance,so the design of the company’s equity system is essential to corporate governance.The dual shareholding structure can ensure the control status of the enterprise’s founder and promote the enterprise’s sustainable development.Listing using a double class share structure.In this context,the dual shareholding structure has been widely concerned by scholars.The dual-shareholding structure ensures the control status of the founder of the enterprise.It promotes the sustainable development of the enterprise,but it also becomes a complex problem in corporate governance.This paper adopts literature research,case study,comparative analysis,and other research methods,taking Sichuan Huiyu Pharmaceutical Co.,Ltd.as an example to analyze the corporate governance effect of adopting a dual-shareholding structure.First,the enterprise situation and equity structure of Huiyu Pharmaceutical are introduced.Secondly,it explores the influence of adopting a dual ownership structure on the internal governance structure of the company and the impact on the performance of corporate governance.Finally,it sorts out the positive and negative effects of Huiyu Pharma on corporate governance after adopting this shareholding structure,summarizes the experience,and puts forward corresponding countermeasures and suggestions.Through the analysis of Huiyu Pharmaceutical’s shareholding structure,adopting a dual shareholding structure has positive effects in reducing agency costs,alleviating capital shortage,satisfying multi-level demands,consolidating control rights,and improving decision-making efficiency.At the same time,there is also the problem that the control power of the dual-shareholding structure is too concentrated,which can easily lead to mistakes in decision-making,damage the rights and interests of small and medium shareholders,insufficient diversity of board composition,and weaken the internal supervision machan.Therefore,enterprises should take measures to improve the ability of controlling shareholders and reduce decision-making risk;Improve relevant laws and policies,improve the protection of minority shareholders’ rights and interests,and strengthen internal supervision.