A Study On The Effect Of Corporate Governance Under The Dual Class Structure Of Innovative Enterprises In China

In recent years,many outstanding Internet companies and technological innovation companies in China have chosen to list on the US capital market,and research has found that most of these companies use a Dual-Class share structure when they go public.The Dual-Class share structure is an equity arrangement different from the traditional "one share,one vote" structure,the company's stock is divided into two categories according to different voting rights,and shareholders with high voting rights can get higher voting rights with fewer shares.In foreign corporate governance research,the rationality of dual equity has been controversial.Since the Xiaomi Group adopted The Dual-Class share structure IPO on the Hong Kong Stock Exchange in 2018,the Shanghai Stock Exchange has also implemented The Dual-Class share structure system on the Science and Technology Innovation Board in April 2019.With the relaxation of the restrictions on the dual equity structure policy in China's capital market,scholars in China have also paid attention to it and discussed the issues such as the validity and rationality of the dual equity structure,its applicability in China and whether China's current laws and regulations are valid for its regulatory restrictions.In order to better understand the advantages and disadvantages of the dual equity structure in corporate governance,and how it will affect corporate governance,what are the effects and risks of implementing the Dual-Class share structure in China's innovative enterprises,this article uses Xiaomi Group as a study case,based on a review of the existing relevant literature,evaluates the effect of corporate governance before and after the implementation of the dual equity structure of Xiaomi Group from the two aspects of the company's internal governance evaluation and the company's financial performance.In evaluating the internal governance of the Xiaomi Group Company,this paper draws on the governance evaluation system of listed companies in China and selects director and board governance,shareholder meeting,shareholder rights and equity structure governance,and management governance as the first-level indicators,there are some second-level,third-level indicators to explain them.The weight of each indicator is determined by the expert scoring method and the analytic hierarchy process.The corresponding score of each indicator is calculated by the fuzzy comprehensive evaluation method and the combination of quantitative and qualitative methods,so as to calculate the internal governance score of the company before and after the implementation of the dual equity structure.In the evaluation of the company's financial performance,four commonly used indicators were selected: profitability,operating ability,debt-servicing ability and growth ability.At the same time,according to the characteristics of innovative enterprises,the innovation ability indicators were added.Through the evaluation and analysis of the corporate governance effect of Xiaomi Group,this paper finds that Xiaomi Group has improved the internal governance structure of the company,and to a certain extent,has also ensured the founder's control over the company,but at the same time there are certain decision-making risks.This article also puts forward reasonable suggestions for these deficiencies.At the same time,this article provides some new ideas for the evaluation methods of corporate governance effects,which have certain practical significance.