Alibaba

Table content

1. Introduction Alibaba Group ---------------------------------------------------------p3

2. Alibaba’s prime objective in the choice of stock exchange AND the agency effect on this objective -------------------------------------------------------p3

3. Alibaba Group’s decision (as at 20 March 2014) to launch its IPO in the US stock market rather than in the Hong Kong Stock Exchange-----p4

3.1 Advantages and disadvantages in United States and Hong Kong---p4

Reference list

1. Introduction Alibaba Group: Alibaba Group was established in 1999 by 18 people lead by Jack Ma, a former English teacher from Hangzhou, China. Today the company and its related companies operate leading wholesale and retail online marketplaces as well as Internet-based businesses offering advertising and marketing services, electronic payment, cloud-based computing and network services and mobile solutions, among others. (Alibaba group, n.d.)

2. Alibaba’s prime objective in the choice of stock exchange AND the agency effect on this objective: Online shopping there is expected to grow at an annual rate of 27 percent, according to the iResearch Consulting Group, and Alibaba is the leader in that area. (Gole V. 2014) The prime objective in the choice of stock exchange in the other countries, it will make a more global company and enhance the company's transparency, as well as allow the company to continue to pursue our long-term vision and ideals. Jack Ma will find out soon how much value investors are prepared to put on his version of e-commerce. His Alibaba Group, a "business-to-business marketplace for global trade". (BBC, 2014) For this objective, it needs to launch its IPO to an important and powerful country. For the long-term running and development it’s essential for the company to suit the diversity culture and finance’s collection.

When the company conducts these objectives, it still will face agency effect on...