Research On The Impact Of Xiaomi Group's Dual Shareholding Structure On Its Financial Performance

The relationship between dual shareholding structure and corporate financial performance has always been concerned by scholars at home and abroad,but scholars have different views on the specific impact of dual shareholding on financial performance.Therefore,this paper takes Xiaomi Group,the first company listed in Hong Kong stock market with dual-class share structure,as an example,to study the impact of its dual-class share structure on the company's financial performance.Based on the research foundation of principal-agent theory,control theory and shareholder heterogeneity theory,this paper uses literature research method and comparative analysis method to carry out analysis.On the one hand,it analyzes the research status of domestic and foreign scholars on the selection,motivation and impact of dual-class ownership structure;The impact of Xiaomi Group's financial performance.After research,it is concluded:(1)Xiaomi Group is suitable to adopt a dual shareholding structure.After Xiaomi Group adopts dual shareholding,the founder team can hold the control,improve the efficiency of business decision-making,and then affect the solvency,profitability and development of Xiaomi Group.capabilities have a positive impact and overall improve the financial performance of the company.(2)After the implementation of dual shareholding,the management expenses of Xiaomi Group have increased,and the asset turnover rate and accounts receivable turnover rate have decreased.Therefore,Xiaomi Group should pay attention to agency costs,information disclosure and accounts receivable management.(3)The suggestions put forward in response to the problem are: on the one hand,it is necessary to improve the corporate rules and regulations,establish the "sunset clause" of financial performance performance,improve the information disclosure system and the internal power balance system;on the other hand,it is necessary to improve the management level and enhance the management ability,improve the efficiency of accounts receivable management.The research in this paper enriches the existing literature in the field of the impact of corporate dual-class shareholding on financial performance,and it is hoped that this paper can provide some references for companies that plan to adopt dual-shareholding structure to list on Hong Kong stocks in the future.