Corporate Performance Analysis Under Dual Share Structure

Ownership structure plays an important role in determining corporate performance.Ownership structure affects the development and operation of a company,and finally affects the company's profits.China has always adhered to the principle of "one share,one right".However,since Baidu,Jingdong,Alibaba and other enterprises listed their shares in the United States with the Dual-class Share Structure,it has begun to receive extensive attention in China.At present,foreign countries have mature capital environment,perfect law and and regulations to reduce the risks brought by dual-class share structure.,so the study on that will focus on the reasons for choosing such a structure,the advantages and disadvantages of Dual-class Share Structure and the characteristics of choosing Dual-class Share Structure companies.Since China does not allow listed companies to adopt Dual-class Share Structure at present,there are few studies on the practice of Dual-class Share Structure,and most of them are just theoretical arguments.Most of-the research theories in China focus on whether it is necessary for China to adopt Dual-class Share Structure,the applicability of Dual-class Share Structure to China,and the influence of Dual-class Share Structure on enterprises and capital market.Although Dual-class Share Structure has been applied in Chinese enterprises for the first time,its development is not very mature.So what is the impact of Dual-class Share Structure on corporate performance?This paper will start from the research status of Dual-class Share Structure and summarize the basic theory of Dual-class Share Structure,and further select the successful listing of Alibaba in the United States.Firstly,this paper will introduce the case,and then analyze the motivation of Alibaba to choose Dual-class Share Structure,the influence path and structure on corporate performance,and also study the potential risks of Dual-class Share Structure.Furthermore,the advantages and disadvantages will be concluded from the case as well as the conclusion and suggestions.This article has certain research value and practical significance.Although at present our country is not allowed to use the Dual-class Share Structure,many powerful companies go to overseas for listing,which is a great loss for the development of domestic market.This kind of equity ownership structure can bring us some enlightenment and thinking regarding to the question of how to keep those enterprises in domestic market.