Research On Corporate Governance Effect Under Dual-Class Share Structure

In the era of rapid technological development,high-tech enterprises are an important part of the national innovation system and an important force in economic transformation and upgrading.On the one hand,scientific and technological innovation enterprises usually face large capital needs,such as large R&D investment,which needs to be met through equity financing.On the other hand,scientific and innovative enterprises rely on the founder’s personal talent and special capital.The dilution of equity brought by equity financing makes the founder face the risk of losing control.In this case,the dual ownership structure can meet the needs of the founders to obtain funds and control the company,and become the best choice for scientific and innovative enterprises.After Baidu,JD.com and other high-quality enterprises chose the dual equity structure to go public in the United States,China’s capital market has become more inclusive of the dual equity structure.By the end of 2022,five companies on the Shanghai Stock Exchange Science and Technology Innovation Board had chosen to list in a dual equity structure.This includes both the Segway-Ninebot Co.with good development momentum,which was included in the Kechuang 50 index only two years after its listing,and the Jing-Jin Electric Technologies Co,which has not achieved profit since its poor development.So,what kind of corporate governance effect does the dual ownership structure bring? Is the governance effect of the dual ownership structure of science and innovation enterprises universal? How to better play the positive impact of dual ownership structure on corporate governance? All these have become problems worth discussing.Therefore,this thesis selects a double case study to compare and analyze the specific governance effects of the dual ownership structure of Segway-Ninebot Co.and Jing-Jin Electric Technologies Co.Based on the analysis of the research results of the existing literature,the core concepts and relevant theories of corporate governance effect of dual equity structure are summarized respectively;Secondly,introduce the case of Segway-Ninebot Co.and Jing-Jin Electric Technologies Co.,including the company profile,dual-share structure and corporate governance;Then it clarifies the impact path of the dual ownership structure on corporate governance,and analyzes the corporate governance effect of Segway-Ninebot Co.and Jing-Jin Electric Technologies Co.in the dual ownership structure from three aspects of governance structure,financial performance and non-financial performance.Research findings:First,Segway-Ninebot Co.and Jing-Jin Electric Technologies Co.in the dual ownership structure,in terms of stabilizing corporate control,enhancing risk management ability,improving innovation ability and human resources optimization,It has the same positive governance effect.Second,the financial performance and agency costs of Segway-Ninebot Co.and Jing-Jin Electric Technologies Co.Power are different.The financial performance of Segway-Ninebot Co.is good,which can effectively reduce agency costs.Jing-Jin Electric Technologies Co.Power’s financial performance is unsatisfactory,and agency costs continue to increase.The reason for further analysis is that Jing-Jin Electric Technologies Co.has no reasonable equity checks and balances,there is the phenomenon of "one word" of the founder,and it is not scientific in business decision-making and strategic formulation.Therefore,suggestions are put forward in four aspects: optimizing the constraint mechanism of privileged shareholders,designing appropriate equity checks and balances,strengthening the construction of the board of directors and improving the information disclosure system,so as to better play the advantages of the dual equity structure and further improve the level of corporate governance.Through this study,we hope to provide some enlightenment for the scientific and innovative companies that want to achieve long-term development through the dual ownership structure in the future.