Research On The Performance Of Meituan Company’s Implementation Of Dual Equity Structure

The market economy and technology empowerment have driven the rapid development of the Internet industry.The special nature of Internet companies in terms of high investment,rapid technological change and reliance on human capital has led to the urgent need for the founding team to find a way to secure control,and the dual shareholding structure began to develop and grow.China’s market,driven by economic globalization,has also begun to accept the application of such special equity structures.Starting from the Hong Kong Stock Exchange,which first accepted the dual equity structure,China’s SSE Science and Technology Board,Shenzhen Stock Exchange Venture Exchange and North China Stock Exchange have successively accepted this type of equity system,and more and more high-quality Internet companies are successfully listed in our market.Supported by the theoretical foundation,the reasons for the implementation of dual equity structure in this type of companies are sorted out in stages based on the various stages of the development of Internet companies,in which the Internet companies obtain a large amount of cash flow while the management and decision-making rights of the founder team for the development of the company are stabilized,and the robust rights of the founders guarantee the stability of the company’s long-term trading business,and these factors together These factors together drive the positive development of the company’s performance.For the case company Meituan,we analyze the motivation of Meituan’s dual equity structure,analyze the company’s performance in detail from the four dimensions of the balanced scorecard,and use data envelopment analysis to make a cross-sectional comparison between Meituan and companies in the same industry to further analyze Meituan’s performance.Finally,it is concluded that after listing with a dual shareholding structure,Meituan’s capital needs and the control rights of the founders are secured,and the company’s performance has achieved better development.Meituan will have more competitive advantages in the future market development and promote the long-term development of the company.However,the dual shareholding structure inevitably has certain risks.The subjective nature of information disclosure and the highly concentrated control make the protection of the rights and interests of small and medium shareholders unbalanced,and the negative effects of the dual shareholding structure may be triggered if the founder with strong rights is blindly confident or makes wrong decisions.Therefore,it is possible to learn from the experience of other countries and introduce regular sunset clauses to improve regulatory effectiveness,while mitigating the conflicts that exist between various counterparties through stricter corporate disclosure requirements,with a view to obtaining better corporate performance and longer-term development.