Research On The Impact Of Fibocom’s Limited Parternership Structure On Governance Performance

With the continuous development of information technology,innovative enterprises need to adhere to long-term development strategies and continuously invest in research and development and innovation in order to maintain competitiveness in the rapidly changing market environment.However,the information asymmetry problem of innovative enterprise business models has been exacerbated by external investors,who are more likely to focus on short-term gains and overlook long-term development.Maintaining control of the innovative enterprise by the founding team with professional technology and management capabilities while obtaining external financing has become a new issue facing corporate governance.In this context,limited partnerships,which give all control to the general partner regardless of the size of their investment,have entered the public vision.This paper takes Fibocom as a research case and explores the effect and mechanism of the limited partnership structure after its establishment.Firstly,based on the agency theory,human capital theory,and stakeholder theory,this paper reviews and sorts out the existing research on the motivation and effect of limited partnership structure establishment by domestic and foreign scholars.Secondly,this paper introduces the case company and analyzes the limited partnership structure establishment plan and motivation.Then,combining theory and the internal governance structure of the company,this paper analyzes the mechanism of limited partnership structure from three perspectives: control allocation of the board of directors and shareholders’ meeting,incentive for management and core employees,and risk sharing.Finally,from the perspectives of internal governance,research and development innovation,long-term investment,corporate value and performance,and potential risks,this paper compares and analyzes the effect of limited partnership structure establishment and puts forward optimization suggestions for the limited partnership structure.Through the research,this paper finds that the establishment of a limited partnership structure by Ficobom improves the company’s governance mechanism.Firstly,in terms of the control mechanism,the founding team serves as a general partner and can obtain absolute control of the shareholders’ meeting to maintain the nomination right of the board of directors.Secondly,in terms of the incentive mechanism,management and core employees serve as limited partners and obtain incentives for low-priced original shares,and tax incentives further amplify the incentive effect.Finally,under the limited partnership structure,the founding team only needs to make a small amount of investment to obtain all control of the limited partnership enterprise,forming a risk-sharing mechanism and reducing the financial risk that the founding team may face due to investment failures such as R&D.The establishment of the limited partnership structure has had a positive impact on Ficobom,improving internal governance,enhancing research and development innovation capabilities,promoting long-term investment,and achieving an increase in corporate value and performance.At the same time,there are still potential problems in the limited partnership structure that the separation of the controlling rights and cash flow rights is not conducive to the protection of the rights and interests of minority shareholders and the design defects of the limited partnership system.In short,this paper believes that the construction of the limited partnership structure can help to improve the corporate governance mechanism and promote the long-term development of the enterprise,but it needs to be optimized for the potential problems of the limited partnership structure.