Research On The Protection Of Founding Shareholders' Control Rights Under Dual Share Structure

In the entrepreneurial boom that has lasted for several years,a large number of innovative Internet companies stand out in the fierce competition.However,the financing gap of development makes enterprises have to bring in external investment.As venture capital prevails,companies attract more institutional investors.In order to get the return of capital as soon as possible,they participate in enterprise management,replace the equity with capital input based on the same share and same right system,dilute the equity of the founding shareholders,shake or even deprive the core control right of the founding shareholders,and the status of the founding shareholders is at stake.However,the control right of founding shareholders is related to the development of enterprises and affects the change of enterprise value.Therefore,it is very important to protect the control right of founding shareholders through dual ownership structure.Domestic scholars have made a more detailed study on the possible adaptability of dual ownership structure,but it can only be discussed based on the hypothesis.In April 2018,the Hong Kong stock exchange re-lifted the ban on dual-share structure,and xiaomi group was immediately listed on the Hong Kong stock exchange,allowing dual-share structure to enter the domestic securities market.Taking xiaomi group as a case,this paper analyzes and studies the protection mechanism of dual ownership structure on the control right of founding shareholders and its influence on enterprise value.Starting from the theoretical level,this paper proposes that the motivation of protecting the control right of founding shareholders is that it can contribute to the improvement of enterprise value.Then analyzes dual share structure on the control of the founding shareholders protection mechanism,on the basis of the psychological ownership of the fierce competition in the industry and founding shareholders,are endowed with super voting stakes to ensure that the absolute voting rights,put forward the mechanism impact on the enterprise value of the three paths:corporate strategy,corporate culture and corporate governance,ensure high efficiency of the enterprise,eventually apply to increase enterprise value.By combining theory with case study,the protection of Xiaomi group's control right to founding shareholders and its influence path on enterprise value are determined.Through the performance analysis of market and finance,the influence effect of dual ownership structure on enterprise value is determined,and the conclusion is drawn and enlightenment and Suggestions are put forward.After analysis,the paper draws a conclusion:dual ownership structure to the founding shareholders of the right to control the protection mechanism,by stabilizing the strategic layout and pace of the enterprise,help the completion and inheritance of corporate culture,improve enterprise decision-making and operating efficiency,stabilize and enhance enterprise value,ultimately promote the development of the capital market and economic society.The analysis conclusion of this paper has certain reference value for the further development of dual-share structure in China and the improvement of the supervision mechanism of the securities market,and also provides certain reference for other enterprises that want to IPO through dual-share structure in China.