Study On The Motivation And Effect Of The Implementation Of Dual-class Shares Of JH Company

For a long time,my country’s capital market has only allowed the implementation of the equity system of the same share with the same rights,but the system of the same share with the same rights is gradually unable to meet the needs of the rapid development of technological innovation companies.Different from the shareholding system of the same share with the same rights,the dual shareholding structure can guarantee the founder’s control and decision-making power over the company,and at the same time improve the company’s financing problems.In 2019,the Science and Technology Innovation Board of the Shanghai Stock Exchange officially allowed companies with a dual-shareholding structure to go public,which marked the birth of a new equity system on the Science and Technology Innovation Board in my country,and the dual-shareholding structure has received more and more attention from the state.In 2020,JH Company adopts the dual-shareholding structure to be listed on the Science and Technology Innovation Board.Its market share in the intelligent short-distance transportation industry is on the rise,and the development trend is good.Researching the motivation and effect of its implementation of the dual-shareholding structure will help JH Company Improving the deficiencies in the implementation process can also provide reference and reference for companies that will adopt a dual-class share structure.This paper takes the JH company with dual shareholding structure as the research object.First of all,it expounds the research background,purpose and significance,collects domestic and foreign literature on the dual shareholding structure,and clarifies the research content and research methods of the paper.Secondly,it introduces related concepts such as dual shareholding structure,and sorts out theories related to shareholding structure such as control right theory,principal-agent theory,and shareholder heterogeneity theory,laying a theoretical foundation for the analysis in the following article.Thirdly,the basic situation of JH Company is introduced,and the motivations for adopting the dual shareholding structure are discussed.The research finds that the motivations for JH Company to implement the dual shareholding structure include satisfying the development financing needs while ensuring the founder’s control,implementing the company’s long-term development strategy,and exerting There are three aspects of founder human capital value.Then,analyze the effect from four aspects of short-term market response,financial performance,dividend distribution and company value of adopting dual-class share structure.In terms of short-term market reaction,based on the event study method,the market’s response to JH’s adoption of the dual-class shareholding structure is positive,and investors are optimistic about this emerging shareholding structure;in terms of financial performance,from the perspective of decision-making power,the impact of the dual-shareholding structure It is two-sided.The business decisions made by the founders with high voting rights have a positive impact on solvency and profitability.After removing the cost of capital,they are still in a profitable state and generate positive economic value-added.However,the founders’ decision-making power The lack of constraints makes the company’s rapid expansion affect the inventory turnover ability and weaken the cash flow ability;in terms of dividend distribution,the dual shareholding structure has an adverse impact on dividend distribution;in terms of company value,through the calculation of Tobin’s Q value,double The ownership structure has not brought about a lasting increase in the value of the company.Finally,based on the analysis of motivation and effect,summarize the advantages and disadvantages of JH company’s implementation of dual shareholding structure,and put forward optimization suggestions.The advantages include: solving the contradiction between equity financing and dilution of control rights,strengthening the founder’s control rights,significant short-term market response,and ensuring the implementation of the company’s strategy;the disadvantages include: lack of supervision and constraints on voting rights,weakening the power of dividend distribution Ability and decision-making information disclosure is not timely.According to the deficiencies,it puts forward optimization suggestions such as strengthening the supervision mechanism,guaranteeing the dividend distribution of investors,and improving the information disclosure system.