Shareholder Heterogeneity?Dual Ownership Structure & Financial Effect Of The Company

The choice of equity structure is an unavoidable topic for both investment and financing parties.In recent years,more and more companies rely on dual ownership structure for financing and listing.Compared with single ownership structure arrangement,dual ownership structure has significant advantages in financing.However,the "dual equity" has attracted many excellent domestic Internet enterprises,such as Alibaba and JD,to go overseas or list in Hong Kong stock market with dual equity structure,which has become a major loss of the mainland stock market.The listing system of "the same share and the same right" in Shanghai and Shenzhen stock market leads to the lack of theoretical research materials for the dual ownership structure in China.In this context,through the case study of Xiaomi group,this paper studies the root shareholder heterogeneity and its impact on the financial effect of the dual ownership structure,which has positive theoretical and practical significance.In essence,the dual ownership structure is the product of coordinating the interests of both investment and financing parties and satisfying the interests of heterogeneous shareholders.The choice of this ownership structure will also affect the financial effect of the company.Firstly,this paper generalizes and classifies the shareholders of Xiaomi group from the perspective of shareholder heterogeneity;secondly,by comparing with "one share,one right" company,it sums up three different types of shareholders' investment motivation;finally,it discusses the impact of dual ownership structure on the financial effect of the company by analyzing the satisfaction degree of three types of shareholders' motivation and comparing with different standards,financial ability analysis and information disclosure.The results of this study show that the heterogeneity of shareholders will lead to the choice of dual equity structure,which will affect the financial effect of the company in the application of standards,management and information disclosure.Based on the results of case study,this paper hopes that the equity structure arrangement of corporate financing listing should be based on the heterogeneity of shareholders,the restrictions on the listingof companies with dual equity structure should be moderately liberalized,accounting standards and information disclosure requirements should be more forward-looking and guiding,so as to achieve a better investment and financing matching.