Equity Financing,Dual Equity Structure And Corporate Performance Analysis

The contradiction between equity financing and dilution of control rights has always been a problem faced by corporate governance.At the same time,equity structure plays an important role in determining the company's performance.The equity structure affects the company's operation,development,and operation,and ultimately affects the company's profit.In recent years,a large number of US high-tech companies have explored a dual shareholding structure,which can broaden the financing channels of enterprises,enrich investors' investment methods,and maintain the stability of corporate control.The dual shareholding structure is restricted by China 's existing laws and capital market rules.Companies with a dual shareholding structure cannot issue shares on the Shanghai and Shenzhen A-share markets.However,most companies have not abandoned this shareholding structure and chose to go abroad.Public offering,the domestic capital market has lost a lot of high-quality assets.After missing Alibaba's IPO,the Hong Kong Stock Exchange issued a revised new version of the listing system in 2018,and companies with a dual shareholding structure can now list on the Hong Kong Stock Exchange.The perfect implementation of the new regulations of the Science and Technology Board at the beginning of 2019,the arrangement of voting rights differences stipulated in the "Trial Implementation of the Continuous Supervision Measures for Listed Companies of the Science and Technology Board",signifies that the science and technology companies can adopt a dual shareholding structure with the same shares and different rights.This article first summarizes the relevant theories of the dual shareholding structure based on the assumption of shareholder heterogeneity,and then explores the reasons for JD.com 's implementation of the dual shareholding structure from the company 's perspective.In the industry,Suning Company adopts the structure of the same share and the same power to compare the performance of the company.At the same time,this article also points out the potential risks of the dual shareholding structure.Finally,this article makes corresponding suggestions from the macro and micro levels.This article has certain value research and practical significance.At present,the company law in China does not support the dual shareholding structure of domestic joint-stock companies,and the shareholding system is single Listing and financing in overseas capital markets.The loss of these high-quality assets is a huge loss in China's capital market.This article can provide a practical inspiration for more companies in equity financing and voting rights allocation;at the same time,it can promote the localization of the dual equity structure to meet the development requirements of some modern enterprises,and allow companies with broad development prospects to be listed in the country.China's capital market is booming.