Analysis of Success to Alibaba IPO: Effectiveness of Dual-class Share Structure
DOI:
https://doi.org/10.54097/4wqrm581Keywords:
Dual-class share structure, Partnership, Initial Public Offering.Abstract
Since the majority of Chinese Internet technology businesses use dual ownership structures, an increasing number of them are opting to list abroad in the rapidly expanding global Internet business environment of today. Many have begun to consider the dual ownership structure as a result of Alibaba Group's successful New York Exchange (NYSE) offering, which featured an unusual ‘one share, one vote’ and ‘partnership system’. Alibaba initially disclosed the list of 27 partners and their terms of office on June 16. It also revealed the identities of the nine board members of the future public business and the most current financial data. Using a investigation of the literature and a comparative analysis, this research will examine Alibaba Group's dual ownership structure, as well as the benefits and drawbacks of such a structure for corporate governance. Additionally, it will examine how the system affects Alibaba's financial and risk-control performance. At the end of the paper, the author offers suggestions for the "implementation" of the dual ownership structure in China through the research.
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