Research On Corporate Governance Of Millet Under Dual Shareholding Structure

As early as the 1980 s,dual equity structure has been widely used in the United States,but the dual equity structure has been controversial in China.Because for corporate governance,the application of this new equity structure has its own advantages and disadvantages.It can separate cash flow from voting power,ensure the founder's control over the enterprise,but it will bring potential problems to corporate governance,such as damaging the interests of small and medium shareholders.This is contrary to the "same share and same power structure" which our theory and practice have always adhered to,so it has not been popularized in China.It was not until April 30,2018 that the Hong Kong stock exchange of China issued a new IP0 regulation,which officially allowed the listing of dual equity structure companies.In 2019,the scientific and Technological Innovation Board of the mainland capital market in China has become a pilot plate of dual equity structure.Firstly,this paper sorts out the concepts of dual-class share structure and corporate governance.Different countries and scholars have different definitions of dual-class share structure.Therefore,this paper first defines the two concepts in a unified way.On the basis of the definition of the concept,this paper analyzes the corporate governance effect of the application of dual-class shareholding structure in the listing of Xiaomi Group in Hong Kong on the basis of three theories,namely principal-agent theory,stakeholder theory and information asymmetry theory.In order to see the change of corporate governance effect more intuitively in the analysis process,this paper builds an evaluation system of corporate governance effect only for Xiaomi according to its actual situation.Under this system,this paper from the aspects of corporate governance has chosen three most representative first-level indicators,respectively is the director and the board of directors,shareholders' meeting,shareholders' equity and equity structure and management,and then select the corresponding secondary and tertiary indicators,through the expert scoring method to give the corresponding weights are calculated the index scores.From the calculated score can be found that the dual class share structure is particularly obvious.It can balance the equity financing needs of Xiaomi to prevent the hostile takeover of Xiaomi,improve the decision-making efficiency of Xiaomi,reduce the short-sighted behavior of the management of Xiaomi,reduce the agency cost of Xiaomi,optimize the corporate governance structure of Xiaomi and improve its competitiveness.At the same time,it will also bring many problems to Xiaomi,but on the whole,the advantages outweigh the disadvantages.At present,although the domestic literature on dual-class share structure has been abundant,the number of enterprises adopting this new type of share structure in China is small,so the literature on the effect of corporate governance brought by dual-class share structure is still very rare.This paper hopes to make up for the scarcity of literature and make some contributions to the promotion of dual-class share structure.