Research On The Effect Of GTJA Investment Group Holdings Boya Bio-Pharmaceutical Group

Since its origin in the 1940 s,private equity investment has grown rapidly and has grown so far.It has become an important financing channel outside of IPO and bank loans in China.The private equity investment institution withdraws the equity value difference income after the enterprise IPO by selecting non-listed enterprises for equity investment.Due to the uncertainty of enterprise development,private equity investment institutions usually adopt a large and comprehensive investment strategy,that is,to participate in a large number of enterprises with a low investment amount,obtain a minority stake,and fully cover the investment field to spread the risk.Under this model,a small amount of equity makes the private equity investment institutions have weaker decision-making power over the enterprise,and often can only passively accept the decision of the major shareholder.Once the disagreement leads to the exit,the investment risk will increase greatly.Therefore,how to change the passive situation of private equity investment institutions and play a more active role in market regulation has caused widespread thinking.For enterprises,in the context of industrial upgrading and market competition,managers are often unable to cope with internal and external resource integration and industry trend research,and need long-term and stable assistance from professional investment institutions.National policies also support private equity firms to participate in the company's asset restructuring in a variety of ways.In addition,previous studies have shown that the role of private equity investment institutions in business operations is controversial,and the market environment,the equity background and investment experience of investment institutions,and post-investment management models will all have an impact on it.This paper analyzes the case of GTJA Investment Group Holdings Boya BioPharmaceutical Group.GTJA obtained the control of Boya Bio in 2007 and led the IPO of Boya Bio.After that,it did not immediately withdraw,but held it for a long time and operated as a listed company platform.The analysis found that when private equity investment institutions gain control,the high proportion of shareholding and control advantages make private equity investment more motivated and more qualified to participate in business decision-making,and promote post-investment management to increase value of enterprises to obtain rich investment Reward.Enterprises can also enhance the competitiveness of enterprises by leveraging the financing platform and professional capabilities of major shareholders.Consistent interests have greatly eased the agency problem,improved the company's operational efficiency,and promoted the company to achieve more value creation.