Research On The Motivation And Effect Of Dual-class Share Structure In Science And Technology Innovation Enterprises From The Perspective Of External Governance Mechanism

With the further promotion and popularization of China’s capital market supervision,China’s domestic capital market began to gradually open up the scale of capital integration,broaden the way of capital introduction and aggregation,at the end of 2019,China’s first science and technology innovation board to implement dual-class equity structure listing company--Ucloud,for the capital market equity ownership reform has a great symbolic significance,related research is still in the stage of further exploration.To sum up,from the perspective of external governance mechanism,what are the motivations for the implementation of dual-class share structure of science and technology enterprises in China? How effective is the implementation? As well as the potential risks and disadvantages of dual-class share structure,this paper focuses on the research questions.Further,based on the existing literature,on the one hand,the research on dual-class share structure mainly focuses on listed companies in the United States and Hong Kong stocks,and the listing plan of China’s science and technology innovation board enterprises passed the review in January 2019,and the number of listed companies on the science and technology innovation board is large,but the unified lack of industry-related norms,and the broad listing conditions lead to greater financial and financial risks for companies listed on the science and technology innovation board;On the other hand,from a research point of view,most of the literature analyzes the dual-class share structure from the perspective of internal governance of the company,or from the perspective of law,and few articles take the external governance mechanism as the perspective to deeply explore the motivation and implementation path of the implementation of dual-class share structure and the financial market reaction of the STAR Board enterprises.Based on the theory of reputation mechanism and other related theories,this paper will divide the implementation path into corporate governance model,employee salary incentive,agency cost,etc.,connect the specific practical motivations and multi-dimensional effects of the implementation of dual-class shareholding structure,summarize and summarize the specific financial and market effects of dual-class shareholding structure,and objectively view the advantages and disadvantages of dual-class shareholding structure,and put forward relevant suggestions based on the actual situation and industrial characteristics of case companies.The research conclusions of this paper are:(1)In terms of the main analysis object of motivation,the motivation for the implementation of dual-class share structure is mainly summarized into three points: ensuring the core control of the founder,stabilizing the long-term development cornerstone of the company’s strategy,broadening corporate financing channels and meeting the "heterogeneous needs" of shareholders.The center of this motivation will be biased according to the different enterprises:(2)In terms of the implementation effect as the main analysis object,taking Ucloud as an example,Ucloud has some changes in the implementation effect,on the one hand,in terms of financial performance,affected by the epidemic and the economic downturn,the financial situation of Ucloud in recent years has been poor,its profitability and development ability have been reduced,and its financial risks have further intensified;On the other hand,in terms of non-financial performance,affected by external media reports and untimely disclosure of its own information,the market reaction of UCD after the implementation of the dual-class share structure fluctuated greatly,and when compared with relatively comparable companies,it was also found that the performance was poor,but surprisingly,the company’s innovation and development ability has been further improved,which is worth paying attention to.(3)Furthermore,this paper analyzes the enterprise from the perspective of external governance mechanism and finds that there are certain risks and shortcomings in the implementation of dual-class share structure,and puts forward relevant suggestions for these shortcomings.