Study On The Impact Of Dual-Class Ownership Structure On Financial Performance Of Xiaomi Group

In April 2018,the Hong Kong Stock Exchange(HKEx)issued new rules for IPO,allowing the listing of companies with Dual-Class Share Structure(DCSS),which indicated that China's capital market began to accept the DCSS system.In January 2019,China Securities Regulatory Commission(CSRC)officially permitted the listing of Dual-Class Share Structure,symbolizing the formal introduction of DCSS into China's capital market.In January 2020,the listing of Ucloud on the Science and Technology Innovation Board in China's mainland has aroused wide discussion on DCSS in society.The emergence of DCSS enterprises in the domestic capital market has triggered an extensive discussion in the academic community.Because financial performance serves as an important part of corporate financial management,it is of unique theoretical and practical significance to study the impact of Dual-Class Share Structure on corporate financial performance.This paper,by systematically elaborating related literature and theories at home and abroad,analyze the mechanism of DCSS on financial performance.Targeting at Xiaomi Corporation,the first domestic company which is listed in Hong Kong with Dual-Class Share Structure,and using the methods of financial index analysis and TOPSIS,makes both transverse and longitudinal analysis of Xiaomi's financial performance on the micro and macro levels,thus evaluating the financial performance of the company itself and the industry it belongs to before and after its listing with DCSS,and analyze the motivation and risk of adopting DCSS.The conclusion is drawn that the Dual-Class Share Structure has a positive influence on the financial performance of Xiaomi Corporation and is conducive to the development of the enterprise,and the adoption of Dual-Class Share Structure in domestic enterprises requires preconditions.In view of the above research conclusions,this paper puts forward relevant countermeasures and suggestions.First,in terms of Xiaomi Group,it is necessary to improve the supervision mechanism of super voting rights,establish a protection mechanism for the interests of minority shareholders and improve the information disclosure system.Second,in the aspect of science and innovation enterprises,DCSS should be used to maintain control and accurate valuation when seeking development through listing.Third,in terms of regulatory authorities,we should establish the investor class action system,improve the power supervision system and improve the information disclosure system.