Research On The Corporate Governance Effect Under The Dual Ownership Structure

The dual ownership structure can be simply described as "a system that allows the existence of two types of stocks in a company that are given different voting rights".The biggest difference between the ownership structure and the traditional ownership structure is "the same shares and different rights".This kind of ownership structure is more applied to the innovative enterprises of science and technology to ensure the founder's driving force and control power,and thus to ensure the healthy development of the enterprise.With the introduction of the slogan "Mass Entrepreneurship,Mass Innovation" and the implementation of the new economic policy,China's capital market has begun to encourage the return or listing of scientific and technological innovative enterprises.And in this environment,the Hong Kong Stock Exchange further proposed for the first time to allow "the same shares and different rights" structural enterprises to list in Hong Kong.This was prior to Jing Dong,Baidu,and so on.It is good news for enterprises listed abroad because the domestic capital market is not inclusive of its ownership structure.For more unicorns such as Meizu,it is a better opportunity to raise capital to strengthen enterprises.Although the SFC and the SSE made reference to the Special voting Rights Division in their pilot scheme of 2 March The requirements of corporate governance are still on the macro level.For the listed companies,how to set the difference of voting rights and how to keep and adjust the voting rights are discussed in this paper.Information disclosure and investor protection have not been formulated,so it has become a meaningful topic to explore whether the dual ownership structure can be fully implemented in the capital market of our country and how to set up laws and regulations.As a part of corporate governance,the ownership structure will inevitably affect the quality and effect of corporate governance.Therefore,what impact will the dual ownership structure have on the board of directors,the board of supervisors,the shareholders' general meeting and so on.at the same time,it will also affect the quality and effect of corporate governance.What kind of challenges or hidden risks are brought to enterprises and how to deal with these challenges and risks become the problems that must be considered when discussing the full implementation of dual equity structure in China.For this purpose,this paper takes Jing Dong Company listed on NASDAQ as the target enterprise,and makes a detailed analysis and discussion on the influence of the above-mentioned dual ownership structure on the corporate governance effect.In order to make a risk-benefit analysis for the full implementation of the dual equity structure in the capital market of our country,and put forward the relevant policy recommendations.This paper mainly adopts the methods of literature research,case analysis and comparative study to study the case company.Firstly,through reading the domestic and foreign literature on dual ownership structure and corporate governance and its effects,this paper combs the effects of dual equity structure on corporate governance and corporate financial performance,which provides theoretical basis and reference for the research of this paper.Understand the current research stage and research direction.Secondly,by comparing all kinds of corporate governance evaluation system,according to the criteria of index selection,the index of corporate governance evaluation system suitable for Jing Dong is selected,and then the weight of each index is determined by the result of expert score table.In the process of analyzing the effect of corporate governance,we calculate and analyze the changes of Jing Dong's corporate governance level before and after the application of dual equity structure and the change of governance performance before and after the application of dual equity structure.From the two aspects of internal evaluation of corporate governance and performance evaluation of corporate governance,this paper analyzes the impact of the application of dual ownership structure of Jing Dong Company on corporate governance,and draws a conclusion that the application of dual shareholding structure can affect the part-time rate of Jing Dong's single board.The protection mechanism of minority shareholders and the incentive mechanism of management restraint act on Jing Dong's corporate governance,and ultimately on the finance,innovation,risk management,information disclosure and other aspects of the enterprise.Finally,this paper makes a comment on the potential risks that Jing Dong needs to deal with further in the application of the dual ownership structure,and puts forward the relevant adjustment and policy suggestions for the overall implementation of the equity structure in the capital market of our country.