Research On The Risk Of Dual Equity Structure Of High-tech Firms

Ownership structure plays a vital role in the normal operation of an enterprise.An irrational equity structure affects the operation and development of the enterprise and may even cause serious operational risks to the enterprise.China has long insisted on a one-share-one-vote relatively equal structure,but since high-tech companies such as Baidu Group,Jingdong Group,and Alibaba Group have successively listed in the United States in the form of dual equity structures,the dual equity structure has gradually begun to receive Chinese investors.Widespread attention,especially after the Hong Kong Stock Exchange allowed dual-equity structure high-tech companies to be listed in 2018,the dual-equity structure has once again become a hot topic.Existing researches on dual equity structure in China focus on whether it is necessary for China's capital market to adopt dual equity structure and the applicability of dual equity structure to China's economic environment,but it lacks a relatively complete and targeted potential risk for dual equity structure.Research,so this article focuses on the research of dual equity structure risk.Because the domestic capital market currently does not allow listed companies to take the form of dual-equity structure equity,there are few related studies on practical cases of dual-equity structure,and most of the research is only based on theory.So what are the potential risks of a dual equity structure?How should it be controlled?This article will start from the current research status of the dual equity structure,and summarize the basic theory of the dual equity structure,and further analyze the characteristics of the dual equity structure of Alibaba Group successfully listed in the United States and Hong Kong.First introduce the case,briefly describe the specific situation of Alibaba,and analyze the degree of recognition of the dual equity structure by the external environment based on the process of listing between the two places.At the same time,explain the reasons for Alibaba to choose the dual equity structure.Secondly,we selected Alibaba's "repurchase stock event","white paper incident","Alipay incident",and "Ma Yun's retirement incident" to conduct in-depth analysis to analyze the risks caused by Alibaba's dual equity structure to the company's external shareholders and the business itself.Finally,based on the case analysis of Alibaba Group,relevant suggestions are proposed for the introduction of a dual equity structure in China's domestic capital market,mainly implementing relevant risk control measures from the aspects of corporate internal governance and external monitoring environment.Although China has not yet allowed the use of a dual equity structure,the phenomenon of many potential high-quality high-tech companies going overseas for listing has undoubtedly caused a great blow to the development of China's capital market.If the potential risk of the dual equity structure is reduced,this will help accelerate the improvement of corporate governance efficiency and increase the institutional diversity of the capital market,and will help stimulate the prosperity and innovation of the local capital market in the new round of China's capital market system opening.