Dual-class Stock Structure and Corporate Innovation -- Evidence from Listed Companies on the Science and Technology Innovation Board

The dual-class stock structure is a common corporate governance model for science and technology enterprises. We explore the influence of the dual-class stock structure on the innovative behavior of companies listed on Chinas Science and Technology Innovation Board (STAR) and provide theoretical and practical insights for policymakers and enterprise managers. In our empirical analysis, we use a hand-collected sample to demonstrate that firms with dual-class stock structures exhibit a higher level of innovation, offering valuable insights into its practical effects and international practices. Furthermore, we find that only eight firms have adopted the dual-class stock structure, indicating that it is underutilized in Chinas capital market.