Research On The Evaluation Of Corporate Governance Effect Under Dual Shareholding Structure

The founder of a company has been adhering to and inheriting the company’s business philosophy and culture since its inception,which is of great significance to the development of the company.However,in the process of the development of start-up companies,especially in the Internet and other hightech companies,the initial investment will usually bring a huge amount of investment,which will cause serious dilution of shareholders’ rights and interests.If the founder of an enterprise loses control,it is likely to bring negative effects to corporate governance.Therefore,in order to maintain the control of the founders,high-quality companies such as Alibaba and JD are willing to go abroad to go public in the United States.In April 2018,Hong Kong Stock Exchange revised the main board listing rules,and for the first time agreed that enterprises should be listed in a dual equity structure.Then,in April2019,China’s science and technology innovation board allowed companies with differentiated voting rights to be listed.As the dual ownership structure has been implemented for a short time in China,the previous research on the dual ownership structure in China mainly focused on its localization experience summary and other aspects.Due to the lack of actual cases,China’s capital market still has no mature evaluation mechanism to accurately evaluate the effect of enterprises adopting the dual ownership structure,so it is necessary to increase research and exploration in this area.In the article,we analyse the efficiency of remediation management in the Xiaomi enterprise under dual ownership structure to gain insights related to the application of dual ownership structure in China’s science and innovation enterprises.In this paper,the evaluation of Xiaomi corporate governance effect is mainly from Financial and non-financial perspectives.First,through financial governance indicators,the paper evaluates the corporate governance effect in four ways: market capitalisation,ability to make profits,ability to access reliable information and ability to grow;Second,using the existing domestic corporate governance evaluation system,the indicators associated with Xiaomi’s corporate governance were selected and combined with the AHP method,a complex multi-objective decision-making problem was treated as a system,the objectives were decomposed into multiple objectives or criteria,which were then decomposed into several levels of multiple indicators to assign and quantify them from the perspective of non-financial indicators.The study found that the application of the dual ownership structure had a positive effect on the comprehensive governance of Xiaomi Company,which gradually recognized the market value of Xiaomi Company and steadily improved its profitability.At the same time,It also improves Xiaomi’s governance mechanism,significantly enhances the governance level of the board of directors,further development of a system to protect the interests and rights of small and medium-sized investors,improves the management mechanism,and improves financial governance.However,during the corporate evaluation system,it was discovered that the governance of Xiaomi Company under the dual ownership structure still has some shortcomings,which need to be improved,for example,impacting on the ability to protect the interests of small contributors,Restricting the role of the supervisory mechanism and increasing the risk of decision-making.The root cause is due to the excessive control of the Xiaomi enterprise.The article also makes sensible proposals to address these shortcomings.We should improve the protection mechanism for small and medium-sized investors,introduce a limitation mechanism for holders of Ashares,and improve the founder’s decision-making ability so that the dual ownership structure plays a positive role in Xiaomi’s corporate.