Research On The Governance Effect Of JD Dual Class Structure

Although the dual shareholding structure has only been practiced in China's H-share market,it has been active for a long time in the US Nasdaq market.Many high speed developing Internet and Science&Technology companies in China's have been affected by the domestic legal system and forced their Initial public offering in the US stock market or the Hong Kong stock market which has led to the loss of a large number of high quality corporate resources in China's domestic capital market.However,in the trial document of the Science and technology innovation board with registration system issued by the China Securities Regulatory Commission in 2019,it is clearly stated that enterprises will be allowed to publicly raise shares in China's domestic capital market with a special voting right structure.Therefore,as the dual ownership structure officially enters the public view of China,the research on corporate governance of special voting rights structure will be further deepened.At present,there are no scholars in China who systematically study the governance effect of the dual equity structure,and the governance of the dual equity structure involves a wide range of issues,which affects the company's equity concentration,shareholder composition and shareholding of the operators.In addition,the governance effect of the dual class structure is diversified.This paper analyzes the governance effect of the dual-equity structure behind financial performance,since the analysis of financial performance is easier to quantify.This paper selects JD as the research object of the governance effect of dual ownership structure.After combing the existing research results on dual ownership structure,corporate governance,financial performance and real earnings management,combined with principal-agent,information asymmetry and stakeholder theory,analyzed and discussed governance effects of dual ownership structure of the study.Firstly,it analyzes the ownership structure and control rights of JD,explores the reasons why JD chose the dual shareholding structure,and clarifies the governance effect of JD's dual shareholding structure based on the previous theoretical basis.Then it analyzes the financial performance and the degree of real earnings management of JD,the results evaluating the dual effect of ownership structure of governance.Finally,based on the research conclusions,summarize the case revelation.Firstly,the influence of the actual controller's corporate governance ability and moral quality is magnified.Secondly,the concentration of control promotes the efficiency of the company's strategic decision-making mechanism.Thirdly,the stability of control reduces the impact of other stakeholders on the long-term implementation of the strategy.