Research On The Influence Of Strategic Investment Of Private Equity On Business Performance

Private equity investment usually refers to the investment in non-public listed equity,which is an equity investment.Considering the way of equity withdrawal in the process of investment,it usually makes a profit by selling the shares it holds through listing,merger and acquisition,buyback and other ways.Private-equity industry in our country in the 1990 s,there are four stages in its development to now only by the state,and with the management of the capital market in our country is becoming more and more strict,the private equity industry also began to enter to return to the origin,by nature,clear bottom line,based on good faith standard stage of development,so enterprise want to have healthy and long-term development,it must be suitable for enterprise development strategy of private equity’s strategic investment is focused on this,the private equity investment institutions to invest in enterprises,Firstly,a special team will be set up to have a detailed understanding of the industry background and relevant national policies of the enterprise.Then,the equity structure of the target enterprise to understand,in order to determine whether they can participate in the target enterprise’s daily management process;Finally,after the target enterprise is determined,appropriate directors and supervisors will be dispatched according to the development status of the enterprise,and value-added services suitable for th e future development of the enterprise will be provided.The purpose of this paper is to study of private equity’s strategic investment on enterprise performance,first the related literature at home and abroad and the theoretical basis for review,and then in January 2015 to the end of December 2016,107 companies listed on the gem on the empirical analysis to study the effect of private equity strategic investment on enterprise performance,finally to invest in keeping jiangsu makes a banner of introduction,and concrete analysis of the private equity institutions strategic investment’s impact on the operating performance of jiangsu banner.Firstly in January of 2015 to the end of December 2016,107 companies listed on the gem of large sample of OLS and healthy standard error regression when under the significance level of 1% of the private equity indeed can have a positive impact on enterprise performance,and then further for 76 enterprises with private equity involvement after mixed regression model and the individual effect found regressor is netmargin prop and interpreted under the confidence level of 5% and 10%,respectively,significant correlation,This fully demonstrates that the strategic investment of private equity has a better impact on enterprises than the capital investment.Finally,the case of jiuding investment in zhongqi,jiangsu province further verifies the results of the empirical analysis by analyzing the financial situation of enterprises.