The Influence On The Governance Of New Oriental Education And Technology Group From VIE-mode Listing

Under the background of economic diversification and globalization,the top priority of establishing standard system of modern enterprise is efficient corporate governance,which also includes improvement of corporate performance and achievement of high return from investment.As long as the enterprise wants a longer and stable development,the healthier and more effective governance are required.Since EDU opened training class in 1993,it developed fast and transferred into a joint-stock company from a family-run store,and set up branch school everyplace.But like all the private enterprises,EDU group had faced some problems in development,like fund shortage,difficult financing,imperfect governance etc.As we all know,if EDU wants a longer development,more perfect governance is needed to match its development.This paper makes an analysis of influence on corporate governance from EDU's VIE mode.Firstly,the paper analyzes the general history of EDU,introduces VIE,which is a special kind of listing financing mode,and research on the reasons why EDU applies this mode for listing;secondly,the paper analyzes the development of corporate governance before the listing of EDU,and makes a major analysis on performance of its governance after listing,which is from two aspects: the internal governance and external governance,like special governance structure in internal governance ownership structure,which is that board composes its management layer,and strong investor protection system in external governance,accession of organization investors and board committee consisted of independent directors,thought above analysis and comparison with EDU before listing,the paper founds,the corporate governance gains a lot of improvements and becomes more modernized,standardized and hyalinized by the means of VIE-mode lifting;but at the same time,the paper finds that there are still some risks in corporate governance,like risk of corporate governance structure,governance risk of duality,risk of information disclosure,legal risk,to which the paper proposes some strategies for solving.