Has The Dual Equity Structure Improved The Effectiveness Of Corporate Governance?

The shareholder structure has always been the basis and core of corporate governance,which plays a crucial character in the growth and development of companies.The capital market of our country has been pursuing the principle of “One share,one right” for a long time,however,as our economy enters a new normal,more and more high-quality internet corporation have opted to list in the United States in order to avoid dilution of Founder’s equity,which is a very serious loss to our capital market.To change this,The Hong Kong stock exchange has changed its listing rules on the main board to allow companies to list with dual-class shares for the first time in April 2018;The Shanghai and Shenzhen stock exchange also released new regulations in 2019 and 2020,respectively,which officially allow the science and innovation board to establish special voting rights.With this set of measures,it is expected that in the future there will be more and more companies with dual shareholder structure in our country.So can a dual shareholder structure improve the effectiveness of corporate governance? This problem not only relations with growth and development companies,and the future development of our capital market also have an important significance,as port to adopt double the capital structure of listed companies,to analyze the situation after the governance of listed companies,you choose the intention for the future a double capital structure of listed companies with references.Firstly,this paper combs the related theories and concepts of dual-class share structure and company governance effectiveness,and then puts forward the corresponding hypotheses,the empirical analysis of Chinese concept stock listed in the United Sates from 2014 to 2021 is conducted and it is found that dual-class share structure has a essential positive influence on ameliorating the effectiveness of company governance.The heterogeneity analysis shows that,compared with the traditional enterprises,the dual ownership structure has a greater influence on ameliorating the effectiveness of company governance in high-tech Enterprises.Xiaomi,the first corporate listed in Hong Kong to implement dual-class share structure is the subject of the study,this paper explores the influence of dual-class ownership structure on the effectiveness of company governance in Xiaomi from three aspects: Governance Structure,governance performance and innovation capability,the results show that the implementation of dual-class ownership structure has a positive influence on company governance in Xiaomi,which verifies the empirical results.Based on the results of empirical analysis and case study,this paper argues that dual-class ownership structure has more advantages than disadvantages and improves the effectiveness of corporate governance.