Research On The Motivation And Effect Of Double-layer Equity Allocation Of Listed Companies On Science And Innovation Board

In recent years,the Internet and other high-tech industries have risen rapidly and have become the new gravitational force driving economic development.Science,technology and innovation enterprises have the characteristics of valuing knowledge and technology,large capital needs and great potential.a great demand for capital and a large potential that is difficult to assess,and the traditional structure of equal shares and equal rights hardly satisfies their needs.The two-tier ownership structure allows the company to maintain control over the founding shareholders in the case of external financing,Giving founding shareholders greater voting rights than ordinary shares,This makes technology Internet companies prefer a two-tier stock structure.After the Hong Kong Stock Exchange readopted the two-tier stock system,the mainland also tried to establish a two-tier stock structure for the first time.In 2019,China Securities Regulatory Commission officially proposed to allow enterprises with special equity structure to be listed,and set up a science and innovation board in Shanghai to implement the registration system.Then in 2020,Yochitsu company was listed on the science and innovation board with a double-layer ownership structure,creating a new situation in China’s A-share market.This paper chooses Yochitsu Corporation as the research object to discuss the motivation of scientific start-ups to choose a two-tier share structure for listing and the influence of the structure.First of all,this paper expounds the related theories of the two-tiered ownership structure,combs through the reasons why the company chooses the two-tiered ownership structure,and analyzes the literature on the impact of the structure on the performance of the company,then compares the differences in the system setting of double-layer ownership structure in the United States,Chinese Hong Kong and Chinese mainland’s Science and innovation board.Secondly,we use the case study analysis method to understand the development and financing process of the case company,the situation of the founding shareholder holding and the design of the two-tiered equity system this paper obtains the following four reasons for the company to adopt double-layer equity structure.(1)Give full play to the founder’s talent and realize the founder’s ideal;(2)Prevent malicious acquisition and focus on long-term planning;(3)Protecting the company’s innovation culture and retaining the control of its founder;(4)Reduce waste from information transfers and increase the efficiency of management decision-making.Then,by looking at the short-term and long-term market performance of the company after it went public,it became clear that there was acceptance of a two-tiered ownership structure.Then,analyze the profitability and growth ability of the company before and after adopting the double-layer ownership structure,a two-tier equity system helps companies grow.Observe the changes of the company’s control right before and after listing.It is concluded that the double-layer ownership structure can effectively maintain the shareholder’s control right,From the company’s business development and strategic implementation,a two-tiered shareholding structure helps to achieve the company’s long-term goals.At the end of this paper,the main risks to case companies when the structure is applied in practice are analyzed.Based on the latest regulations and case company system,some suggestions for improvement are put forward.