Research On The Impact Of Dual Equity Structure Of Listed Companies On The SSE STAR Market On Enterprise Value

In March 2019,the China Securities Regulatory Commission issued the Administrative Measures for the Registration of Initial Public Offering on the SSE STAR Market(Trial),further liberalizing the dual equity policy and allowing dual equity structure companies to apply for listing on the SSE STAR Market.In April of the same year,UCloud Technology Co.,Ltd.submitted an IPO application,and was listed on the SSE STAR Market on January 20,2020,becoming the first enterprise to be listed on the Dual equity structure of China’s SSE STAR Market.Dual equity structure is the core of the same different rights,namely after the issuance of the company’s shares will be divided into different types,with shares corresponding to different kinds of shares and different voting rights,so as to realize the company’s voting rights and cash flow rights,make the founding shareholders to less to control the power of the company’s equity,not only can avoid due to the equity financing and founder loss of control of the enterprise,and can effectively resist malicious acquisition,promote the long-term development of the company.But the Dual equity structure itself is a double-edged sword,the establishment of the "super vote" makes enterprise management personnel can get does not match the actual investment capital voting rights,which is likely to lead to the enterprise agent costs,and hold "super vote" management team has the interests of external shareholders motivation and conditions,eventually damage the interests of the company decision to seek for personal gain.For the study of SSE STAR Market condition Dual equity structure of the company value of the role,this paper chooses the first in SSE STAR Market listed Dual equity structure of company —— optimal carved as a research goal,optimal to choose the motivation of the Dual equity structure and the Dual equity structure of optimal carved enterprise value effect and influence way.First of all,this paper combed the Chinese and foreign dual equity structure of the literature,from the maintenance of the founder control,promote the company development and to adapt to the external environment of the three perspectives of dual equity structure choice motivation,and from the positive and negative perspective analyzes the disadvantages of dual equity structure,finally summarizes the dual equity structure and the company value of related research results.In terms of theory,by introducing the existing theoretical knowledge related to Dual equity structure,the influence mechanism of Dual equity structure on the value of the company is summarized.Secondly,the case study method is used to analyze the value impact of the Dual equity structure on UCloud Company from the three aspects of financial performance,market performance and enterprise valuation.The research results show that: from the financial performance of UCloud,The Dual equity structure is conducive to improving the asset quality status and business growth ability of enterprises,But at the same time,in the pursuit of long-term interests,May lead to a decline in corporate profitability,Higher debt risk;From the market performance of UCloud,Dual equity structure can be recognized in the capital markets,But the long-term improvement in its corporate value in the capital market still needs the support of hard performance,The choice of expanding the scale of the market also means that the enterprise value will continue to be reduced before the investment is not converted into actual results;From the analysis of the value valuation of UCloud,The corporate value of the Dual equity structure recognized by the capital market may be overestimated in the short term,as time goes on,The value will slowly return to its own reasonable value range,But if there is no performance to support it,Eventually,the value of enterprises will decline and even be undervalued.For the above performance and the theoretical influence mechanism,this paper obtains the influence path of the Dual equity structure on the enterprise value: the dual equity structure enables the founder to invest in human capital and strengthen technological innovation;by improving corporate governance and optimizing the strategic value of the enterprise.Finally,proposes the optimization of the Dual equity structure: first,improve the internal power balance mechanism to prevent the abuse of power;second,set the reasonable duration of the Dual equity structure to avoid pursuing the long-term interests and ignoring the current situation;third,strengthen information disclosure to protect the interests of external investors.