The Influence Of Dual Structure On The Financial Performance Of Science And Technology Innovation Enterprises

As the cornerstone of an enterprise,the ownership structure is extremely important for the development of an enterprise in each period.In the contemporary era of emerging economy,the ownership structure is constantly changing and developing.From the perspective of equity structure,this paper selects JD,an enterprise in the popular science and technology innovation industry,as a case study to study the impact of dual-class equity structure on corporate financial performance.Dual-class share structure is generally adopted by technology innovative enterprises and family-owned companies.Double equity structure of the enterprise's performance and its long-term development has brought certain benefits,first double team or founder ownership structure can help,is a family business elite in the process of financing from the equity dilution and cause a loss of control,makes the enterprise can be deployed in accordance with the expected long-term strategic guideline,which is advantageous to the enterprise long-term development.However,the dual class share structure also has many disadvantages,because the control right of the dual class share structure is concentrated in the hands of the management,which will lead to problems of supervision,agency cost,the possibility of dictatorship,and so on.This paper first introduces the theory and overview of dual-class share structure,and also lists and summarizes the theoretical research of dual-class share structure at home and abroad and the relationship between ownership structure and corporate performance.Secondly,the case of JD's successful listing in the United States is selected to analyze the changes in the ownership structure before and after the listing.Then,the performance of JD is taken as a case for analysis and compared with the performance of similar enterprises to draw a conclusion.Although China does not allow the use of dual-class share structure,but there are many powerful companies listed overseas,which is undoubtedly a great loss to the development of China's market,how to retain these enterprises listed in China,this kind of share structure can give us some inspiration,and trigger thinking.