| Dual shareholding means that the company divides ordinary shares into two categories based on voting rights.Shareholders with higher voting rights can obtain higher voting rights with fewer shares.Companies in the Internet and high-tech industries are more inclined to implement dual-shareholding structures.Internet companies such as JD.com,Meituan,and Pinduoduo are all listed with dual-shareholding.Due to institutional restrictions,in the past,China did not allow companies to go public with a dual equity structure.On April 23,2018,the Hong Kong Stock Exchange issued new IPO rules that allow companies to use a dual-shareholding structure for listing.On January 30,2019,the China Securities Regulatory Commission issued the "Implementation Opinions on the Establishment of the Sci-tech Innovation Board and the Pilot Registration System on the Shanghai Stock Exchange".The implementation opinions stated that innovative companies are allowed to list on the Sci-tech Innovation Board with a dual equity structure.Due to the short time for implementing dual-shareholding structures in China and Hong Kong,few companies have successfully adopted dual-shareholding to list in the two places,and there is a lack of relevant case studies.At present,most of the existing researches are based on foreign experience,and the main research object is the dual-shareholding system itself.There are few studies on the motives and effects of implementing dual-shareholding structures.The question studied in this article is to take the Xiaomi company listed on the dual-shareholding structure as an example to explore the motivations of Xiaomi and technologically innovative companies to implement dual-shareholding structures,and on this basis,analyze the positive effects and potentials that the dual-shareholding structure brings to Xiaomi Risks,I hope to enrich the research on dual-shareholding structure and summarize practical experience.The research found in this paper:(1)In order to protect the founder's control rights,ensure the company's long-term development,resist external hostile acquisitions and maintain human capital,this is an important reason for many companies,including Xiaomi,to implement a dual-shareholding structure;(2)The dual-shareholding structure ensures the control of the founder of Xiaomi,guarantees the independence and continuity of management decision-making,and ensures that Xiaomi's business conditions are stable and positive,which has a positive impact on the company's internal governance and strategy;(3)Under the dual-shareholding structure There are potential risks,such as decision-making risks,connected transactions and increased agency costs.The research features and significance of this article are: when exploring the reasons for the implementation of dual equity structure in Xiaomi,this article introduces a comparative case company that adopts the same share and the same rights-Vanke.Starting from the problems existing under the same share and the same rights,a comparative analysis is obtained.The motivation for Xiaomi to adopt a dual-shareholding structure.In addition,this article considers the impact on corporate governance,combined with financial performance data,uses qualitative and quantitative research methods,explores the positive impact and potential risks of the dual-shareholding structure,and puts forward some suggestions for whether other technological innovation companies should choose to The dual-shareholding structure is listed and how to construct the shareholding structure provides a reference.Through the analysis of Xiaomi Group,it is found that the company's internal governance structure of Xiaomi Group has been continuously improved and optimized,which also guarantees the founder's control over the company,but at the same time there are certain risks.This article also puts forward some reasonable suggestions for these shortcomings. |
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