Research On The Impact Of Meituan’s Dual-class Share Structure On Financial Performance

As the cornerstone of an enterprise,the ownership structure determines the shareholder structure and the extent of shareholder focus,thus affecting the way and effect of the shareholder’s exercise of power,and thus plays a decisive role in the formation,operation and financial performance of the corporate governance model.On the one hand,business development cannot survive without funding..In order to solve the financial problems faced by development,many start-up enterprises introduce investment institutions to carry out multiple rounds of financing;On the other hand,the company cannot survive without the management and decision-making of the founder and his team.However,multiple rounds of financing have diluted the equity of the original actual controller and his team.In recent years,due to the financing of enterprises,the founder of the company lost the control of the operation of the company also appeared many times.The advent of dual-class shares has changed that.Due to the emergence of dual-class share structure alleviates the contradiction between control and capital to a certain extent,it is favored by many enterprises at home and abroad.Many high-quality Internet enterprises,such as Alibaba,JD.com and other companies with dualclass share structure have gone overseas to list.So does dual-class share structure really have a positive impact on enterprise management?Based on this,this thesis takes Meituan as a case study.First,the literature review is used to review and synthesise the relevant literature on dual-class share structure.and corporate financial performance.Secondly,it introduces the initial circumstances of the case enterprise,reviews the previous financing process and ownership structure status of Meituan Company,and concludes the motivation for Meituan to adopt dual share structure.Then,taking The motivation of Meituan’s choice of two-tier share structure as a starting point,the influence mechanism of two-tier share structure on financial output is analysed.Then,the thesis analyses the financial development of Meituan.from the basic financial ratio analysis and the use of entropy method to build a comprehensive assessment procedure to explore whether the dual-class share structure has a positive impact on the production and operation of Meituan.Finally,the thesis gives suggestions on improving dual-class share structure mechanism from three aspects: corporate governance,external supervision and system construction.The thesis concludes as follows;(1)Heterogeneous shareholders often opt for a dual-class share system;(2)Meituan’s long-term financial performance is supported by its two-class share structure;(3)Two-class share structure presents corporate governance risks.In order to improve the dual-class share structure,the following suggestions are given: first,Improving the mechanisms of domestic control to ensure that voting rights are not abused;Introduce media supervision to improve Information sharing;Third,establish a corresponding mechanism to protect minority shareholders’ rights and benefits.