Study On The Investment Behavior Of Private Equity(PE) In China

China has introduced PE since the 1980s.After nearly half a century of development,PE has made great progress in China.However,compared with the international PE market,China's PE is still at an early stage.While China's PE is facing historic opportunities,there are also problems such as lack of systems,shortage of talents,and weak investment concepts.In order to cope with the risks faced by the PE investment process,various types of PE institutions in the Chinese market have gradually explored some investment behaviors and preferences that have unique Chinese characteristics.In view of this,this paper systematically demonstrates the PE investment behavior in China's national conditions,and in-depth analyzes the common and typical PE(Syndicate and Staged Investment)behavioral motives and their impact on investment performance in China's PE market to make up for existing research gaps.The main contents and conclusions are as follows:Firstly,this paper reviews the related theory of PE,mainly including the principal-agent theory,transaction cost theory of Coase Jensen,also includes follow-up to expand the principal-agent theory and other related theory research,combined with the PE operation processes and business models constitute a relatively complete knowledge system of PE,and ultimately the formation of PE the behavior feature of"Feature-Motivation-Performance"research ideas.Secondly,after collecting and screening the sample data,based on the full use of data materials,a detailed statistical description and analysis of the PE behavior from the three perspectives of PE totals,distributions,and methods is used to outline its dynamic evolutionary trends and transitions,abstracting and summarizing the characteristics of PE behaviors.The research shows that in recent years,China's PE industry has made great progress regardless of scale or investment mode,and China's PE has the characteristics of geographical aggregation,favoring high-tech industries,and the stage distribution has a tendency to move.The proportion of China's PE syndicate investment and staged investment has increased year by year.Different growth areas and preferences for different regions,industries,and stages have provided different materials for future research.Thirdly,the three motivations of staged investment and syndicate investment are sorted out and summarized respectively,and on this basis,the relevant research hypotheses are put forward for empirical test.According to the different setting of dependent variables,this paper adopts different methods,such as Possion Regression,Logistic Regression,and OLS.The empirical results show that:agent risk and lock-in risk are mainly the motivation of staged investment of China's PE institutions;financial motivation,resource motivation,and future transaction flow are the main factors that affect the behavior of syndicate investment of PE institutions in China.Finally,the paper empirically tests the influence and mechanism of PE's syndicate investment and staged investment behavior on PE's investment performance from two aspects of exit mode and return.The empirical results show that:stage investment behavior of China's PE mechanism on the exit of the investment performance has significant negative effect when PE institutions are trying to stage investment to reduce agency costs and improve investment performance,phase behavior application in the provinces/city investment,can indeed improve the investment performance;however,the staged behavior can produce the opposite effect when investing in the invested enterprises in the province or city.The syndicate investment behavior of PE institutions has a significant negative impact on their exit investment performance.Due to the existence of "selective disadvantages" before the investment in syndicate investment,when the PE industry market is highly competitive,the syndicate investment behavior of PE institutions has a more significant negative impact on investment performance.Based on the perspective of PE institutions,this paper studies the motivation,performance differences and the underlying mechanism of China's PE investment behavior.This paper not only has important practical guidance value for the PE institutional investment,but also helps to clarify the methods and ways for PE institutions to effectively adopt investment behavior.This article is of great significance for promoting the healthy development of PE industry and realizing PE to effectively promote technological innovation.