Research On The Motivation And Effect Of The Dual-class Share Structure Of Scientific And Innovative Enterprise

The development and growth of scientific and technological innovation enterprise is conducive to accelerating the construction of China’s scientific and technological power,which is in line with the needs of the national development strategy.The characteristics of "light assets and heavy manpower" of science and technology innovation enterprise mean that equity financing is the main way to obtain development funds,under the one share,one vote,equity financing will lead to the dilution of the founder’s equity,and eventually lose control of the enterprise,which is not conducive to the good development of science and technology innovation enterprise.The dualclass share structure can protect the control of the founders while obtaining equity financing,which is conducive to giving full play to the human capital advantages of the founders and ensuring the long-term stable development of the enterprise.Before 2018,China’s capital market has long implemented the one share,one vote system,resulting in a number of outstanding scientific and technological innovation enterprise in China going overseas to set up dual-class share structure listing,which has brought great losses to China’s capital market.in order to reduce the loss of China’s high-quality enterprise resources,the Hong Kong Exchanges and Clearing Limited and the Shanghai Stock Exchange introduced dual-class share structure system in 2018 and 2019 respectively.At present,the introduction of dual-class share structure in the mainland capital market is relatively short,so the existing case studies mainly focus on mainland internet enterprises listed overseas,and there is less research on enterprises in other industries.Due to the differences between different capital markets and the particularity of the development of Internet enterprises,the existing research conclusions have limited reference significance for enterprises in other industries in China.Therefore,this thesis takes Huiyu Pharmaceutical,a pharmaceutical enterprise listed on dual-class share structure in the mainland capital market,as a case study object,and analyzes the motivation and effect of its dual-class share structure,aiming to enrich the research on dual-class share structure in China and provide experience for other enterprises that want to set up dual-class share structure listing in the mainland capital market in the future,which has strong theoretical and significance.This thesis first sorts out the literature and theories related to the research content,and defines the concepts related to the research content.Secondly,sort out and analyze the scientific and technological innovation enterprises with dual-class share structure in China.Thirdly,Huiyu Pharmaceutical was selected as the research object,from the internal needs of enterprises and the external environment,the motivation of the dual-class share structure of Huiyu Pharmaceutical was explored,and then the financial and non-financial effects brought by the dual-class share structure of Huiyu Pharmaceutical were analyzed from six dimensions: financial performance,corporate governance,innovation ability,capital market performance,minority shareholder’s interests and supervision mechanism.Following this compared and analyzed with the average values of enterprises with one share,one vote in the same industry and the industry.Finally,relevant conclusions are drawn and policy recommendations are made.Through research and analysis,this thesis mainly draws three conclusions: Firstly,science and technology innovation enterprises are suitable for using dual-class share structure;Secondly,the dual-class share structure has a positive effect on the development of enterprises;Thirdly,the dual-class share structure also carries the risk of failure of the supervision mechanism and damage to the interests of minority shareholders.In view of the above research conclusions,this thesis puts forward relevant suggestions: Firstly,Enterprises should set up a dual-class share structure in a scientific and reasonable manner;Secondly,improve the ability of founders of science and technology innovation enterprises;Thirdly,strengthen the construction of internal and external supervision mechanisms;Fourthly,improve the interest protection system for small and mediumsized shareholders.To a certain extent,the research in this thesis enriches the research on dualclass share structure in China,and provides reference and help for other scientific and technological innovation enterprises in China that intend to set up dual-class share structure listing.