Research On The Motivation And Performance Of Xiaomi Group To Implement Dual-class Share Structure

In recent years,the stability of corporate control has been eroded by the pursuit of financial capital by institutional investors: Wang shi,jobs,Zhuang Zhen Chao by foreign capital out of the company.Financial capital relies on the threat of transfer of control caused by the traditional practice of the same shares and the same rights,which has a bad effect on the operation and management of the company and disturbs the order of the capital market.The reason is that equity financing leads to the dilution of the founder's control.Under the background of the system of "the same shares and the same rights" in our country,it is difficult to solve the dilemma that the expanding territory urgently needs the capital and the founder maintains the control right,and then adopted by the founders.However,China's a-share market still adheres to the practice of "same shares and same rights",resulting in a large number of outstanding Internet companies going public in the United States,which makes China's capital market lack of high-quality resources,and under the circumstances that capital markets in various countries are rushing to seize resources,in order to improve the competitiveness of China's capital market,we should re-examine the rationality and limitations of different rights in the same share.In order to find out why the Dual-Class share structure,which is a special ownership structure,is favored by innovative enterprises,and what kind of effect the implementation of this system will bring to enterprises,this paper,based on reading the literature at home and abroad,referring to incomplete contract theory,corporate governance theory,principal-agent Theory and human capital theory,this paper lays the foundation for the following,and then summarizes the literature from the perspectives of motivation,risk and implementation impact of dual-class equity,next,this study chooses xiaomi group,the first domestic brand listed on the Hong Kong stock exchange with a dual-class shareholding structure,as the research subject,and takes the implementation of dual-class shareholding as the case study object,in-depth interpretation of the development of double-level equity and regulatory model,and combined with the Xiaomi group's practice to explore the implementation of double-level equity motivation,impact path,results and existing shortcomings.Finally,it summarizes how to design the equity structure to protect the interests of all parties,and at the same time,puts forward some constructive suggestions to the regulators and listed companies.The main conclusions of this study are as follows: First,the theory rationality and practice urgency of the dual-class ownership structure;second,the dual-class ownership structure has an impact on corporate performance through corporate governance,financing constraints and strategic decision-making;Third,the two-tier ownership structure has a positive impact on the development of the company;Fourth,the application of the two-tier ownership structure needs restrictive conditions.The innovation of this paper is to try to explore the impact of the two-tier ownership on the company's performance,breaking through the limitation that the existing research still remains at the legal level,the author studies the dual-class shareholding structure of the Xiaomi group from the perspective of management and finance,not limited to the a-share market,and further enriches the practical research on the dual-class shareholding structure,the purpose of this paper is to provide new control right solutions for the same type of innovative enterprises,and to provide ideas for China's open capital market.