Research On The Influence Of Dual Class Share Structure On Pinduoduo’s Business Performance

Since its introduction in March 2019,the rules of the Science and Technology Innovation Board have received a lot of attention.Among them,the acceptance of companies with "differential arrangements for voting rights" to be listed on the Science and Technology Innovation Board has broken through the "Company Law" on the same shares and the same rights.This makes the dual-shareholding system the first of its kind on the Science and Technology Innovation Board.Since my country previously did not allow companies with the same share and different rights structure to go public,many Internet companies went to the United States to go public in order to maintain the founder’s control over the company while raising funds.JD,Alibaba,Vipshop and Pinduoduo have successively adopted dual-shareholding structures to go public overseas,causing the domestic capital market to miss out on a number of outstanding technological innovation enterprise resources.In this regard,the dual shareholding structure system has gradually attracted the attention of all walks of life in our country.More and more scholars have begun to study the necessity and applicability of introducing dual-class ownership structure in my country,and discuss the influence of dual-class ownership structure on my country’s enterprises and capital market.The research in this thesis finds that Pinduoduo realizes a dual-shareholding structure with the arrangement of AB shares and a partner system,thereby ensuring the founder’s control and maximizing the value of human capital,and ensuring the controller’s rights and interests while obtaining financing.Based on the premise of the impact path of dual ownership structure on company performance,the thesis analyzes the financial and non-financial indicators of Pinduoduo,and compares with Babytree Group,which adopts single ownership structure,and the industry average In order to obtain the influence of the dual shareholding structure on the business performance of the enterprise,and put forward the potential risks that the shareholding structure may produce.The study found that: because the dual-shareholding structure guarantees the control of Huang Zheng and his team,Pinduoduo can develop steadily towards the strategic long-term goal,and become the third Internet company in my country in a short period of time,and the business performance of the company is better than that of the same company.The baby tree with equal shares has better development prospects.Reference suggestions for the dual shareholding structure: first,as the holder of the control right of the enterprise,it should pay attention to its own comprehensive quality;second,improve the supervision mechanism,and strengthen the internal power check and balance mechanism for internal supervision.,external supervision should establish and improve the relevant laws and regulations system,so that there are laws to abide by;third,a full information disclosure system should be established to protect the rights and interests of small and medium shareholders;fourth,the sunset treaty should be enriched to better promote the future development of enterprises.This thesis takes Pinduoduo as a case to analyze the impact of dual-class ownership structure on the business performance of enterprises,hoping to provide a certain reference value for domestic related Internet companies to try dual-class equity structure and for investors to consider whether to invest in dual-class equity structure enterprises.