The Influence Of Dual Class Share Structure On Enterprise Financing

Alibaba’s successful listing on the New York Stock Exchange has attracted attention from all walks of life to the dual ownership structure..Recently,the return of the VIE to the Chinese stock market has triggered a heated discussion about whether to retain a two-tier shareholding structure.Therefore,the impact of the two-tier ownership structure on the value of US Chinese concept stock companies has become a problem worthy of in-depth exploration.Generally speaking,the founding team or management obtains absolute control over the company by setting up a two-tier equity structure,and this control can bring private benefits to it,thereby affecting the business behavior of the company’s founding team or management.In addition,the setting of a two-tier shareholding structure will affect investors’ judgments on the company,thereby affecting corporate financing.Therefore,this article relies on agency theory,related theories of private gains of control,and the theory of private gains of control,and uses a combination of theories and empirical research methods to try to find out the specific impact of the two-tier ownership structure on corporate financing.This paper mainly adopts the methods of literature research and empirical analysis to study the impact of dual-shareholding structure on corporate financing.The research data is based on Chinese companies,because my country has just allowed the same share with different rights,and there are not many listed companies with dual-shareholding structure.The sample is limited,so this paper mainly uses Chinese stock companies listed in the United States as the data sample.Through the empirical analysis results,we can see that adopting this structure of the same shares with different rights will lead to an increase in the financing cost of enterprises,and enterprises will face greater financing constraints.This study not only helps to understand the reasons why companies choose dual-class ownership structure,but also further analyzes the role of dual-class ownership structure in corporate financing.It is convenient for investors to deepen their understanding and cognition of the dual-class equity structure and China concept stocks,and promote the improvement of the corporate governance level of the dual-class equity structure.