Research On Corporate Governance Effects Under Dual Ownership Structure

The founders of the enterprise implement and inherit the corporate philosophy and culture at the beginning of the business,which undoubtedly plays a vital role in the growth of the enterprise.However,the growth of an emerging company is often accompanied by multiple rounds of financing,especially for high-tech companies such as the Internet,which require a large amount of capital investment in the early stage,which causes the founder's equity to experience multiple dilutions.If the founder of a company loses control,the company is likely to seriously bring about negative effects on corporate governance.Therefore,high-quality companies such as Alibaba and JD.com go to the United States to go public in order to maintain the absolute control of their founders.The Hong Kong stock market in China approved the company to list with a dual-shareholding structure in April2018,followed by the approval of the establishment of companies with different voting rights on the China Science and Technology Innovation Board in April 2019.If the founder's control of the company is achieved by setting up a dual-shareholding structure,how does this ownership structure affect my country's corporate governance effect? After the company is listed,does the dual-shareholding structure have a positive or negative effect on corporate governance? The above-mentioned problems are not only related to the survival and development of private enterprises,but also have great significance for attracting high-quality private enterprises and prospering the local capital market.Based on the literature research and collation,this paper analyzes the share heterogeneity theory,agency theory,and equity incentive theory of dual ownership structure,and studies the influence mechanism of dual ownership structure on corporate governance effects: dual ownership structure passes Change the ownership structure of the company to achieve the purpose of retaining control over the founders and maintaining the heterogeneity of shareholders,and ultimately improve the corporate governance mechanism,enhance the value of the company,and thereby positively affect the governance effect.Based on this path,this article takes Xiaomi Group as an example.First,analyzes the reasons for Xiaomi's dual equity implementation by sorting out the financing experience of Xiaomi Group;secondly,under the guidance of corporate governance theory,select Lenovo Group with the same shares and same rights as a comparative case.Drawing lessons from the corporate governance evaluation system proposed by the Corporate Governance Research Center of Nankai University,the corporate governance effects of Xiaomi Group and Lenovo Group are horizontally compared from the board of directors,shareholders,management,and information disclosure levels.It is found that the dual ownership structure can indeed improve the corporate governance effect to a certain extent by improving the corporate governance mechanism,but it also found that there may be problems such as insufficient information disclosure,increased agency costs,and virtualized supervision functions.Finally,suggestions are made for these issues.For example,my country should put forward stricter disclosure requirements for companies with dual-shareholding structures,and companies should focus on strengthening internal control construction and improving supervision capabilities.In real life,there are many factors that affect the corporate governance effect.The industry,region,and economic level of the company will affect the corporate governance effect.Therefore,this article only uses typical cases to deeply understand the process of implementing the dual-shareholding structure and the motivations for implementing the dual-shareholding structure,evaluate its governance effects,and then summarize and make recommendations for the identified problems.To a certain extent,it has expanded and enriched the research on dual equity and governance effects,and also provided a reference for other high-tech companies that intend to implement dual equity structures.