The Influence Of XM Corporation's Dual Ownership Structure On Financial Performance

With the rapid development of science and technology,the traditional “shareholding and equal rights” system has been unable to meet the governance and development of Chinese enterprises,especially technological innovation enterprises.The domestic equity system is facing new opportunities and challenges.After JD,Alibaba and other companies that adopt the shareholding structure of “shares with different rights”,choosing to go public in the US due to the limitations of the domestic shareholding system,in 2018,the Hong Kong Exchanges and Clearing Limited(HKEx)revised the listing rules and accepted the different rights structure of the same shares.XM Corporation immediately became the first company to go public in Hong Kong with the shareholding structure of “shares with different rights”.The different ownership structure of the same stock enables enterprises in the start-up period to realize financing and obtain funds,while effectively protecting the founder team's control over the enterprise,thereby promoting the long-term strategic development of the company's future stability.However,after the shareholding structure is actually applied to Chinese enterprises,its own advantages and disadvantages and the impact on the company still need to be further explored.This paper firstly elaborates the background of the topic from three aspects: practice,theory and policy,and summarizes and reviews the research status of the dual ownership structure and the relationship between ownership structure and company performance at home and abroad.Secondly,it briefly describes the concept of dual equity structure and company performance,and analyzes the reasons for the emergence of dual equity structure and the theoretical basis of the impact of ownership structure on company performance.Based on the above,the XM Corporation listed on the HKEx is the subject of case study.Starting from the dual shareholding structure adopted by its listing,after introducing the new rules of the HKEx on the different rights of the same shares,the data of XM Corporation,KP Group Limited with same equity structure in the same industry and the overall industry level were collected for cross-case and horizontal and vertical analysis,in order to draw the influence of the dual ownership structure in the local environment on the financial performance of XM.Finally,based on the analysis,the conclusions and revelations are drawn,and the reference suggestions for the implementation of the dual ownership structure are proposed.The study finds that: because XM's dual ownership structure guarantees the control of the founder team,the company is able to achieve stable and good development in accordance with strategic long-term goals,and is at the leading level in the industry.The financial performance is better than the KP Group Limited with the same shares and has a better development prospect.Suggestions for this shareholding: When implementing the shareholding structure with different rights in the same share,we must first establish and improve the relevant laws and regulations,so that there are laws to follow.In addition,the mandatory information disclosure system should be improved,the power balance mechanism within the enterprise should be strengthened,and the cumulative voting system and class action system should be introduced and developed to protect the rights and interests of minority shareholders.The research in this paper mainly has the theoretical significance of perfecting the research system of domestic listed companies with different rights,and the practical significance for the development of XM and other innovative enterprises and the establishment and improvement of China's legal regulations.