The Influence Of VIE Model On Corporate Governance Of TAL

With the development of economy,corporate governance has become an important factor for an enterprise to standardize its profession,and also an effective way to increase its performance and obtain high profits.Therefore,a good enterprise,hoping to operate in a virtuous circle,must first ensure that its own enterprise has a sound corporate governance model.VIE in Chinese means variable interest entity.VIE mode is a popular way for domestic enterprises to go public.Since the promulgation of the regulations on the merger and acquisition of domestic enterprises by foreign investors,more procedures and procedures have been added,leading to the weakening of the popularity of backdoor listing.In this case,vie mode,by connecting overseas listing entities and domestic entities,largely evaded this regulation,alleviated the restrictions of policies,and made many enterprises with financing difficulties successfully listed.TAL is a relatively special enterprise in China.As an educational institution,it has persisted in using science and technology to promote education.In less than 10 years,TAL has become a leading educational institution in China.In the fierce competition of educational institutions,TAL needs to make further expansion and breakthrough in financing.In 2010,TAL,like many educational enterprises,chose the vie model to be listed successfully.After listing,in order to achieve long-term development,TAL has improved its corporate governance after listing.This paper first introduces the VIE mode,discusses the causes of VIE,explains the construction of vie architecture,discusses the applicable industries of VIE mode and the expansion of applicable industries under the new economic environment;secondly,introduces the listing mode of TAL VIE;then analyzes the corporate governance of TAL under the vie mode,and divides the corporate governance into two parts: internal and external governance Analysis;in terms of internal governance,it mainly analyzes the future internal governance from three aspects: corporate governance structure,board of directors and management,and equity structure;in terms of external governance,it discusses the future external governance from three aspects: legal environment,control right,and product competition market.After comprehensive analysis,it can be concluded that TAL's corporate governance has been improved after the vie model is listed Conclusion.But at the same time,TAL has a muddy water event in 2018.Combined with this event,this paper also finds the risks of TAL's corporate governance under the vie mode,including the risks of the agreement itself,the legal risks and tax risks caused by too many subjects,the audit risks brought by the consolidated statements,the risks and problems of incomplete information disclosure,and the impact of the technology innovation board on the vie mode.Finally,this paper puts forward some suggestions on risks,such as countermeasures and suggestions on audit and tax risks,improving laws and regulations,enhancing information disclosure,improving the domestic capital market,etc.These suggestions will help VIE enterprises avoid corporate governance risks and promote the long-term stability of the company.