Research On The Motivation And Effect Of Meituan Dianping On Adopting Dual Class Share Structure

One vote per share is the oldest share structure in the world,and it is also the most widely used in the capital markets all over the world.That is,when shareholders exercise their voting rights,one ordinary share represents one voting right,and the voting weight of shareholders is only related to the number of shares they hold.However,with the rapid growth of the number of enterprises and their financing needs,as well as the continuous increase of malicious acquisitions,this single ownership structure can not meet the operation and management needs of some companies.At the end of the 19 th century,International Silver Company publicly issued non voting shares,breaking the tradition of the same share and the same right,and the dual-class share structure sprouted.In recent years,with the continuous development of China’s social economy and market environment,more and more enterprises pay attention to the impact of share structure on the development and operation of the company,resulting in the demand for the application of dual-class share structure.More and more scholars have carried out research and Discussion on the rationality of dual-class share structure and its applicability in China,and China’s capital market policy is also making continuous progress.In April 2018,in order to attract high-quality enterprise resources and enhance the globalization and competitiveness of China’s capital market,Hong Kong Exchanges and Clearing Limited issued new regulations to allow enterprises to be listed in a dual-class share structure.In September of the same year,Meituan Dianping was successfully listed on the Hong Kong stock exchange with the dual-class share structure.In order to deeply explore the motivation and effect of the implementation of dual-class share structure in Chinese enterprises,this article selects meituan Dianping as a case for analysis.At present,only a few enterprises are listed in China with dual-class share structure.Meituan Dianping is the second enterprise listed in Hong Kong Exchanges and Clearing Limited with dual-class share structure in China.It has a fast development speed and a large business volume after listing.At the same time,it has strong Internet enterprise characteristics,such as light assets,high dependence on technology research and development,and high dependence on core members.The dual-class share structure can better maintain these enterprise characteristics,This makes Meituan Dianping have better research value.Based on the literature review of the dual-class share structure at home and abroad,this article combines the two rights separation theory,principal-agent theory and human capital theory.On the premise of fully understanding the development process,financing process and enterprise characteristics of Meituan Dianping,this article analyzes the main reasons for Meituan Dianping’s dual-class share structure listing,mainly including stabilizing the founder’s control,preventing malicious acquisitions,ensuring the value of human capital and maintaining the long-term development of the enterprise.According to the actual situation of Meituan Dianping,this article analyzes the good effect of the dual-class share structure on Meituan Dianping,which ensures the control right of the founder,maintains the long-term development of the enterprise,and improves the market value of the enterprise.At the same time,the dualclass share structure may also bring risks to the enterprise,which needs to be improved.Finally,the article concludes the case of Meituan Dianping’s implementation of dual-class share structure,hoping to provide some reference for the choice of ownership structure of other enterprises in China.