The Influence Of Dual-class Structure On The Capital Structure Dynamic Adjustment

With the deepening of economic globalization and the more complex social and legal environment today,the maturity of Internet technology has made the types of enterprises more diverse.The traditional structure of the same share and the same rights has its inherent advantages,which guarantees the principles of fairness,justice and openness in legal theory.This is also the reason why it has always been the mainstream equity structure of enterprises.However,hostile acquisitions among enterprises in the market are frequent.Under the background of "mass entrepreneurship and innovation",the founding team of listed companies with a single equity structure controls the development of the enterprise However,it cannot be guaranteed.With the increase of other shareholders’ capital injections,the continuous dilution of control rights makes enterprises have a crisis of control rights and affects the development of enterprises.The emergence of dual ownership structure provides possible institutional arrangements for solving the above problems.The dual-shareholding structure has aroused fierce discussions in academia since its inception.Opponents believe that the dual-shareholding structure directly undermines the principle of fairness and justice among investors and is more likely to lead to the encroachment of the interests of founders and other major shareholders.Supporters believe that It can ensure that the founding team has control over the company,effectively avoiding the hostile takeover of the company and gaining the favor of many family companies.With the continuous progress of related research,scholars have also found that the dual-shareholding structure can improve the efficiency of corporate management and stimulate corporate innovation.In turn,increase corporate value.Decisions related to corporate capital structure are an important part of corporate financial decision-making.The capital structure reflects the real-time financial status of the company along with the birth and death of the company,and conveys the message of corporate strategy and development to a certain extent.The research on the structure never stops.The continuous development of capital structure theory and the continuous deepening of research have made people realize that capital structure adjustment is a dynamic process.With the development of enterprises,their optimal capital structure is constantly changing.Thanks to the emergence of various measurement methods,the static capital structure theory in the traditional framework has been extended,and the dynamic capital structure theory has been formed.Compared with the ratio of a company at a time,the change of the company’s long-term capital structure should be paid more attention.Therefore,this article will comprehensively study the possible impact of the corporate ownership structure arrangement on the capital structure,and verify the changes in the speed of corporate capital structure adjustment under the dual ownership structure.Equity competition in my country’s capital market has become increasingly fierce.As the Chinese market strictly follows the same-share,same-rights system,many high-quality companies seek to go to the United States for listing with a dual-shareholding structure,which has led to public discussion on equity system.To propose whether the single shareholding system has restricted the development of certain or certain types of enterprises and caused the loss of some high-quality assets overseas.The fierce competition for control of Chinese companies and the need for dual-shareholding systems have become reality.Therefore,it is of great significance to study the use of dual-shareholding structures by Chinese companies.It is worth noting that with the release of restrictions on the shareholding structure of the Shenzhen Stock Exchange in 2018 and 2019,the dual shareholding structure has officially entered the Chinese capital market.It is foreseeable that more Chinese companies will adopt dual shareholding listings in the future.Therefore,this article selects Chinese concept stock companies listed in the United States as a sample to study the impact of companies with different ownership structures on the speed of dynamic adjustment of corporate capital structure.That is,companies with dual-share ownership structure are similar to those with the same share and same rights structure.How does the speed of adjustment of its capital structure behave,and the impact of the separation of the voting rights and cash flow rights of the founders on the speed of corporate capital structure adjustments due to the special equity arrangements in dual-shareholding enterprises?This paper selects the 2014-2019 operating data of Chinese concept stock companies listed in the United States,uses the lag of the variables to fit the target capital structure,and uses the dummy variable estimation method to study the impact of the dummy variable of the equity structure on the speed of corporate capital structure adjustment.In the follow-up application,the fixed effect model of the industry and the year is considered to empirically explore the influence of the voting rights,cash flow rights and the degree of separation of the two rights on the speed of corporate capital structure adjustment under the dual ownership structure.The empirical part first regresses the full sample of Chinese concept stocks,and the regression results of the model introducing dummy variables of the equity structure show that:Compared with a single shareholding structure,the adjustment speed of the capital structure of a dual shareholding structure company is slower;while the empirical results of a dual shareholding company as a sample show that the voting rights of the dual shareholding company founders and the separation of the two rights(voting rights/cash flow)There is a significant negative correlation between the capital structure adjustment speed and the voting rights of the founders,that is,as the founder’s voting rights and the separation of the two rights increase,the capital structure adjustment speed becomes slower.At the same time,the founder’s cash flow rights adjust The speed has no significant effect.The above conclusions can provide a possible reference for the application of the dual equity system in Chinese companies,provide some reasonable policy suggestions for the establishment of a sound and standardized Chinese corporate listing system in Chinese capital market,and respond to the country’s call for “mass innovation and entrepreneurship”.Facilitate the development of enterprises and remove possible institutional obstacles.