The Research On The Influence Of Private Equity To The Behavior Of Gem Listed Company In China

With the continuous improvement of China’s multi-level capital market, private equity investment has gradually become a common mode of investment and financing in the capital market. Private equity investment in China started late, but the development speed is very fast. According to the data statistics of Zero2 IPO Research show that the private equity investment market in China increased by 448 private equity funds which can be invested in the mainland of China in 2014, and the total amount of investment in mainland China reached 631.29 million dollars from 423 fund, which beyond the history of the highest in 2008 hit a record high. Multi level capital market construction, loose regulation of the formal establishment of private equity and acceleration the cooperation of foreign investment makes a large number of state-owned assets, social capital and foreign cooperation funds have been set up,which Greatly promote the PE market, the initiative to raise. At the same time, there are a total of 943 cases of investment in market and 537.57 million dollars in 847 investment cases exposed to the amount of investment, which achieve substantial growth and make a highest level in history. Private equity and capital market have a natural connection, and the impact of private equity investments in China’s enterprises,especially the impact of the listing Corporation begin to become increasingly significant. With the successful establishment of the GEM market in October 2009,the GEM market has become the most ideal way for the successful exit of private equity investment, and the impact on the GEM Listing Corporation is more significant.Whether active private equity investments affect the operation and management of the GEM Listing Corporation and how to influence the behavior of the listing Corporation are the focus of the theory and practice.This paper is based on the thinking and discussion of these issues.This paper follows the research path of the theory to the practice. In theory, it focuses on the relevant theoretical analysis of private equity investment, from the perspective of the three party interests game of the fund provider, the investment enterprise and the private equity fund management institution, and using the contract theory, the principal-agent theory and signaling theory to explain the operation of private equity investment. The theory analysis of the behavior of the listing Corporation is the main point of this paper, and it is the core of this paper. In thispaper, the whole process of the investment of private equity investment in the operation process as a clue, then find the behavior of the listing Corporation in the various stages of the mining and the relationship between the private equity investment and the private equity investment, and make the behavior of the listing Corporation defined as four aspects: earnings management, dividend distribution,corporate governance and technological innovation. The influence mechanism and channel of private equity investment on the behavior of the four kinds of companies is the focus of this paper, and it is also a key step to solve the influence of the "black box". On the one hand, this paper analyzes the influence mechanism and channel, and obtains the theoretical hypothesis, on the other hand, according to the theoretical hypothesis, the influence of the empirical analysis on the existence and the extent of the impact of the private equity investment on the behavior of the GEM companies is comprehensively evaluated.Analysis of the impact of private equity investment on the earnings management behavior of the GEM Listing Corporation. After elaborating the definition, motivation and means of earnings management of listing Corporation and analyzing the intrinsic motivation of the influence of private equity on Earnings Management, this paper empirically tests the impact of private equity investments on earnings management behavior of the company before the listing. Private equity can change the ownership structure and corporate governance level to a certain extent, so as to monitor the level of earnings management. Chinese GEM listed companies generally exist positive earnings management behavior, but private equity investment in the previous year of the listing Corporation earnings management level does not exist significant inhibition, and The supervision and influence of private equity investment institutions in China is weak.Analysis of the impact of private equity investments on the distribution of dividends in the GEM Listing Corporation. The influence factors of the dividend policy of China’s listing Corporation are three aspects: the external environment,corporate governance and investor preference. The distribution tendency of the GEM Listing Corporation in China is more significant, so the company’s dividend distribution is significantly higher than that in the main board market. Through empirical research, Private equity investment has an impact on the GEM Listing Corporation’s dividend policy, and the listing Corporation’s cash dividend payment tendency and the payment level are positively correlated with the private ownership.The greater the proportion of private equity in the listing Corporation, the greater theimpact on the gem, and the screening, supervision and incentive mechanism of private equity investment in GEM Listing Corporation are existence.Analysis of the impact of private equity investments on the governance behavior of the GEM listed Enterprise Inc. Private equity investment can affect the corporate governance of GEM Listing Corporation through optimizing the ownership structure,regulating the operation of the board of directors, establishing incentive and restraint mechanisms, and playing a reputation. Whether private equity investment and the proportion of the number of shares held by the board of Independent director of the GEM Listing Corporation is not significant, but the impact of the degree of ownership concentration is significant, and the higher the proportion of private equity, the lower the equity concentration of GEM Listing Corporation. Therefore, private equity investments in China’s corporate governance structure and improving the company’s sustainable development has a certain significance.Analysis of the impact of private equity investments on the technological innovation of the GEM Listing Corporation. At present, the status quo of the technological innovation of the GEM Listing Corporation in China is as follows: the financing difficulties of technological innovation, the shortage of technological innovation, the lack of innovative talents and the lack of re innovation ability. The impact of private equity investment on the technological innovation of the GEM Listing Corporation includes private capital, value-added services, social network resources, incentive mechanism, investment tools and investment way. Empirical research shows that PE GEM Listing Corporation’s innovation ability is stronger, and the proportion of PE shareholding has a positive impact on the technological innovation capability of the GEM Listing Corporation. Meanwhile, the technological innovation ability of the GEM Listing Corporation in China is not only affected by PE background, but also influenced by the location of the company and the industry.Demand and innovation ability of technological innovation in different industries are different, while the attractiveness of different sectors of the private equity investment is also different.This thesis is both theoretical and practical, and it is the research results of theoretical guidance. Through the combination of qualitative analysis and empirical analysis, this paper is devoted to the study of the impact of private equity investments on the behavior of the GEM Listing Corporation. Based on qualitative and quantitative analysis results and the actual situation of our country and in order to promote private equity investment and invested enterprises to develop, this paper putsforward policy recommendations to strengthen the positive impact of private equity investment from regulating the development of private equity investment,continuously improve the quality of the GEM Listing Corporation and creating a good environment for market development.