Research On The Motivation And Influence Of Internet Enterprises Implementing Dual-Class Share System

The development of the Internet has brought more attention to Internet companies.In recent years,many Internet companies have chosen to go public in the United States,and usually choose to implement a dual equity structure,which is related to the characteristics of Internet companies that lighten financial assets and focus on human capital.Under the same-equity system,equity financing leads to dilution of the founder’s equity,which will seriously affect the full play of the founder ’s human capital and is not conducive to the good development of Internet companies.The dual shareholding structure protects the founder’s control by separating cash flow and voting rights,and has been adopted by a large number of Internet companies.This article uses a case study method to study the process of JD.com’s implementation of a dual equity structure.By exploring the causes,processes,and impacts of the implementation of a dual equity structure by Internet companies,I hope that it can help the choice of Internet company equity structure,the prosperity of the capital market,and dual equity The localization of the system provides a certain reference.This article first defines the related concepts,sorts out the relevant theoretical basis and literature research,and then introduces the current situation,motivations and advantages and disadvantages of the implementation of the dual equity system by Internet companies.Then taking Jingdong Group as an example,it analyzes the internal and external motivations of Jingdong’s implementation of the dual equity structure and the implementation process.Finally,from the two dimensions of non-financial and financial indicators,this article analyzes the positive impact of the dual equity structure on JD.It also analyzes the risks from multiple perspectives.Theoretical analysis and case studies have shown that by implementing a dual equity structure,Internet companies can effectively alleviate the equity dilution problem caused by financing in the dimension of non-financial indicators,maximize the value of founders’ human capital,and thereby promote the long-term development of the enterprise.In terms of financial indicators,the implementation of a dual equity structure can also bring positive economic effects to JD.com,and the company’s profitability,operating capacity and development capacity have all been improved.The research in this article has enriched the research content of the dual equity structure to a certain extent.At the same time,with the liberalization of the NEEQ special equity structure policy,it provides more ideas for China’s Internet companies to choose the equity structure,which has certain enlightenment significance.