Research On The Influence And Path Of Dual Share Structure On Corporate Strategy

Different from the traditional single equity structure,the dual equity structure classifies the company's equity according to the high and low voting rights.Through this setting,the high voting shareholders can still maintain the absolute control of the company with a small share.Although this equity structure violates the principle of equity equality,it solves the contradiction between equity financing demand and founder's control right maintenance,and meets the demand of innovative Internet companies.More and more high-quality enterprises in China choose to adopt dual equity structure,such as Alibaba,JD,etc.However,the development of China's capital market is not perfect,and the acceptance of the dual equity structure is not high,which leads to the failure of these enterprises to be listed in China and the loss of investment income overseas.In the long run,China's capital market will be marginalized and lose development vitality.In April 2018,the Hong Kong Stock Exchange officially released the revised Listing Rules for the main board,allowing enterprises with dual equity structure to be listed.Xiaomi company has become the first company to be listed in Hong Kong with dual equity structure.This paper selects Xiaomi company as the research object,based on the research of the literature about the dual ownership structure and the company's strategic development,starting from the internal governance of Xiaomi company,analyzes the influence path and effect of the dual ownership structure on the strategic development of Xiaomi company.Through the analysis of control right and operation status,the positive effect of Xiaomi company's application of dual equity structure is affirmed.Through non-financial indicators and financial indicators,this paper shows the influence and effect of Xiaomi's dual equity on the company's strategy,puts forward the essence of the risk of dual equity structure,points out that Xiaomi's application of this structure is prone to generate decision-making risk and related party transaction risk,and proposes to strengthen information disclosure,establish post event accountability system and strengthen the protection of small and medium-sized shareholders Suggestion.Through the analysis of the application of dual-class share structure in XIAOMI corporation,this paper provides some empirical evidence support for the diversified development of China's equity structure,which has certain practical significance.With the gradual lifting of restrictions on dual-class share structure in China,the outflow of excellent enterprises will be reduced,and the attractiveness of China's capital market will certainly be greatly enhanced.