Research On The Influence Of Xiaomi Corporation's Dual Equity Structure On Its Financial Performance

As the cornerstone of an enterprise,the shareholding structure is very important to the company,and the company will inevitably cause a series of changes in the shareholding structure in the process of financing development.In traditional equity,the conflict between financing and maintaining control rights inevitably resulted in a dual equity structure.Since the principle of "one share,one right" in traditional equity is broken,different countries and regions have different attitudes towards it.This equity structure was not accepted before the domestic capital market.In recent years,with the emergence of Internet companies,many high-quality Companies such as Alibaba,JD.com and other companies have adopted a dual shareholding structure,but have been restricted by domestic systems to go overseas for listing.This upsurge has caused widespread concern over the dual shareholding structure.China's system that does not allow companies with dual shareholding structures to be listed was broken in 2018.After four years of research and discussion,the Hong Kong Stock Exchange officially announced that it allows companies to be listed through a multiple shareholding system.On July 9,2018,Xiaomi Corporation was officially listed on the Hong Kong Stock Exchange,and the company's listing set a new record: Xiaomi is the first dualshareholding structure listed company in Hong Kong and the third-largest technology Internet company IPO in the world.Therefore,taking Xiaomi Corporation as an example,it is quite typical to study the impact of dual ownership structure on the financial performance of listed companies.This article first sorts out the literature research related to the dual shareholding structure at home and abroad,and further explores the relationship between the shareholding structure and the company's financial performance.Then it introduces the principal-agent theory,control power theory,stakeholder theory,and human capital theory as the foundation for the following consolidation.Taking the successful listing of Xiaomi Corporation as an example,we use financial performance index analysis and EVA analysis to study the relationship between dual equity structure and company financial performance.Finally,a conclusion is drawn through the case and summarized.The dual shareholding structure has applicable conditions and will have positive and negative effects on Xiaomi Corporation.Therefore,China should dialectically view the dual shareholding structure.At present,Hong Kong has just allowed listing under the dual shareholding system,which is a remedy for China's capital market.In the past,a large number of competitive well-known enterprises went overseas for listing,which had a great negative impact on China's capital market.As the first company listed in Hong Kong,Xiaomi Corporation has certain applicability for indepth analysis of its dual shareholding structure and financial performance,which can provide data support and reference for domestic companies that want to use the same shareholding structure for listing.