A Research On The Influence Of Dual-class Share Structure On Investment Efficiency Of Company

In recent years,a large number of Internet enterprises in China are rising rapidly.Alibaba,jd.com and many other large Internet companies have adopted dual-class share structure to list in the United States and Hong Kong,which to some extent shows that the traditional system of the single equity structure does not meet the needs of some emerging enterprises.The boom of overseas listing has aroused heated discussions on dual-class shares structure in China.According to the traditional theory of corporate finance,equity structure is the foundation of corporate governance.Different equity structure will directly affect the investment decision of the company,and investment decision is one of the three most important financial decisions of the company.The dual-class structure gives some shareholders super voting rights,which will play a significant role in the company’s investment decisions,which means that the company’s decisions will be fully controlled by a few people with super voting rights.In the traditional shareholding structure companies,the investment decision can fully reflect the will of all shareholders due to the provisions of the same shares and the same rights.Therefore,the existence of dual share structure will directly affect the decision-making voting process of enterprises,and thus have a significant impact on the investment efficiency.Therefore,this paper takes Chinese enterprises listed in the United States as the research object to study the impact of dual-class share structure on investment efficiency,hoping to clarify the real effect of the share structure on investment efficiency,and further find its internal impact approach.This paper takes 75 companies listed in the United States in the six years from 2014 to 2019 as the research object,and analyzes the difference of investment efficiency between 15 dual-class share structure companies and 60 traditional share structure companies.Firstly,DEA-BCC model and Malmquist model were used to analyze the companies’ static investment efficiency and their dynamic changes.Then,based on the obtained efficiency value,5 indicators were selected according to the existing literature research,and regression analysis was conducted by using Tobit model and CLAD model.The results show that both dual-class share structure companies and traditional share structure companies are not fully effective,and on the whole,the investment efficiency of dual-class share structure companies is higher than that of traditional share structure companies,which is due to the high technical efficiency of dual-class share structure companies.The amount of cash and the proportion of liabilities held by the company are negatively correlated with the investment efficiency of the two kinds of companies,while the growth of the company and the quality of accounting information are positively correlated with the investment efficiency of the two kinds of companies.For dual-class companies alone,the R&D expenses are positively correlated with the investment efficiency.We find that the ownership structure itself is not the real reason for the difference in investment efficiency between the two types of companies,and the most important difference is from the company’s technology research and development ability.This paper synthesizes the theoretical and empirical analysis results,and puts forward suggestions from the internal management and external legal construction,aiming at improving the investment efficiency level of the two kinds of companies,hoping it helps the development of listed companies.