Abstract
Equal equity is not a suitable pathway to control the corporations. For Apple Company, due to Jobs’ equal equity, the most important reason that he quitted his company is that at the first step of the company, he had the same shares as other members of the board, but he did not have the absolute control of his company. Also, after the corporation was listed, the shares have been diluted gradually. Losing the control right, Jobs cannot make wise decisions or seek for strategic chances to make a huge profit, when members of the board held diverse opinions. Therefore dual-class share structure and ownership systems are the better choice for founders and entrepreneurs to operate and control the company. Managers have absolute control of the corporations so that they could make intellectual decisions without disturbance and intervention. Companies, accumulating a large amount of money, could pay dividends to shareholders and buy stocks.
Highlights
The influence of the ownership structure on the dividend is enormous
Equilibrium ownership structure could have a negative influence on entrepreneur and founder of the company, just like Stephan Jobs of the Apple Company
Utilizing the equilibrium ownership could dilute the power of the founders, who make the considerable decisions for the company, because different people hold identical proportion of power and each of them purse the largest power and benefits
Summary
The influence of the ownership structure on the dividend is enormous. “Shareholders, having different potential in companies, have different rights in management according to the proportion of their shares” [1]. Due to the power of different ownership structures, shareholders have diverse rights to control the dividend policy, like whether dividing dividends or not. Shareholders’ intervention can have a positive or negative impact on the customer loyalty and the development of the companies. Once shareholders change the dividend policies, it could make customers doubtful about the policies, affecting the development of the companies
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