Research On The Return Of Unicorns To The New Path Of A Shares And Its Impact On Corporate Value

Since the 21st century,with the vigorous development of the Internet industry,a large number of innovative unicorn enterprises have been born in our country,become our country capital market Vitality Foundation.But in the past,due to the late start of our capital market,the relevant laws and regulations are not sound enough,and the traditional way of listing is characterized by a long time,high threshold and so on,leading to a large number of unicorn enterprises listed overseas capital market financing,which makes our capital market lost a large number of high-quality enterprises.After2010,because of the deterioration of the overseas investment and financing environment,the unicorn enterprises in our country have been seriously underestimated and shorted,so they want to return to the embrace of the domestic capital market.At the same time,with the pilot of the registration system and the establishment of the Science and Technology Innovation Board,in order to attract more unicorn enterprises to return to A-shares,the Securities Regulatory Commission issued relevant policies such as document No.21,unicorn Enterprises are encouraged to issue CDR returns for Chinese depositary receipts.In this context,this paper takes the first Unicorn Enterprise No.9,which adopts the new path regression model of “VIE + CDR” with different rights of the same share,as an example,to study the characteristics of the issuance of CDR regression and the impact of the return on the value of the company,for the future return of more unicorn enterprises to provide experience for reference.This paper first introduces the overview of unicorn companies and the advantages and disadvantages of different regression paths,then conducts a qualitative analysis of the motivating conditions and process model and risks of the return of CDR issuance by Nine,followed by a quantitative analysis of the impact on the value of the company after the return of its CDR issuance.In terms of the regression model: issuing CDR regression effectively avoids pricing and taxation issues in dismantling VIE structure,and has high flexibility,low listing threshold,high success rate,and can realize twoway financing for enterprises inside and outside the country after listing,but there are also risks such as CDR price fluctuation and damage to investors’ rights and interests.In terms of the study of the impact on company value after the return: 1)Based on financial indicators,Nine has turned its losses into profits after the return of CDR issuance,with improved profitability and growth capacity,stable short-term solvency and stronger long-term solvency.2)Based on the short-term market reaction of the event study method,its CAR value is constant positive and much larger than the AR value,indicating that its return of CDR issuance is recognized by the market and the company value is improved.3)Long-term corporate value based on Tobin’s Q value,within 2 years of the regression,the Tobin’s Q value of Nine is greater than 1 in all quarters,and its corporate value is higher than the replacement cost of capital,and its corporate value has been improved.Finally,this paper puts forward relevant suggestions for the return of CDR issuance by unicorn enterprises: for the regulator,it should improve the information disclosure system to ensure the timeliness and stability of disclosure,publicize the optimization of CDR pricing mechanism and the protection mechanism of holding CDR rights and interests while enriching CDR varieties,and further improve the exchange system between CDR and underlying securities.For enterprises,in order to issue CDRs that are recognized by investors,they should strengthen their core competitiveness,continuously improve their equity structure and actively communicate with the reporting department.