The Research On The Influence Of Dual Ownership Structure On The Performance Of JD

Ownership structure of listed enterprises is of self-evident prime importance to the development of an enterprise. Scientific and reasonable ownership structure serves as the basis of an outstanding enterprise. Under the new economic normalization, ownership structure is undergoing constant changes and development.By taking dual class share structure as the object of study, this paper offers an analysis of rationality,advantages and disadvantages of its existence with data and probes into its impact on enterprises.Today, dual-class share structure is generally applied to internet enterprises and family-owned enterprises. The dual-class share structure can free the founding team or power holder of family-owned enterprises from the loss of control power caused by ownership dilution and benefit the long-term development of enterprises.However, such structure is also plagued by many disadvantages, such as the issues related to supervision and agent costs and the possibility of dictatorship .This paper starts with the introduction to the theories and overview of dual-class share structure, enumerates the theoretical studies of dual-class share structure at home and abroad and the typical enterprises employing dual ownership structure and summarizes their characteristics and the reasons. Second, it also chooses the case of JD successful listing on the stock market of America, analyzing the changes in ownership structure before and after listing and in the control power in the founding team. Considering the performance development and business expansion of JD.com after listing and comparing it with Suning company, this paper comes to the conclusion that instead of losing competitiveness after adopting the dual ownership structure, JD company greatly enhances its operation ability and takes up a larger proportion in market share. Such facts eloquently that the dual ownership structure plays a vital role in this regard and enables Liu Qiangdong to keep a firm hand on the control power to develop JD.com. At the same time, the author also concludes the advantages and disadvantages and proposes suggestions and thoughts, thinking that China should treat it with a dialectical view. Although such structure has not been allowed in China, many strong companies are coming into the overseas market, a phenomenon that takes a heavy toll on the development of Chinese market. Such ownership structure can bring some enlightenment and provoke thoughts on how to keep these companies.