Research On The Impact Of Private Equity Funds On The Growth Of SMEs

Small and medium-sized enterprises play an important role in China's national economic system,and contribute greatly to economic growth,employment promotion,value creation,and innovation.However,under the existing financial system,coupled with the influence of many internal and external factors,the funding problem has always been the development bottleneck faced by SMEs,and the difficulty of financing for SMEs is also a worldwide problem.In recent years,with the rapid development of private equity funds in China and the guidance of national policies,diversified financing channels have gradually become a trend,and SMEs 'funding problems have been able to find a breakthrough.The thesis research focuses on the impact of private equity funds on the sustainability of the growth of SMEs.It can not only enrich the theory of equity investment and enterprise management from a theoretical level,provide a more comprehensive analysis perspective for existing research,but also target the long-term development and operation of SMEs practice,and provide corresponding countermeasures and suggestions.Based on the research background,combined with the topic selection of the article,the thesis first raises the research question: What impact may the entry of private equity funds have on the growth of the SME group,and what is the relationship between the two? The paper breaks down the problem:(1)Will the entry behavior of private equity funds affect the growth of SMEs?(2)What impact does the investment intensity of private equity funds have on the growth of SMEs?Starting from the research question,the thesis first reviews the literature and theoretical basis involved,and proposes research hypotheses from the two perspectives of the investment behavior and investment strength of private equity funds.Next,the thesis will carry out follow-up qualitative discussions and quantitative empirical links around the research questions and hypotheses.The qualitative analysis chapter mainly discusses the mechanism of private equity funds influencing the development of SMEs,and discusses the two-way impact of private equity funds on the corporate governance and management of SMEs,paving the way for the empirical link.The quantitative chapter starts from the two perspectives of investment behavior and investment intensity,and verifies or falsifies research hypotheses through empirical analysis.The study found:1.Private equity funds can contribute to the development of SMEs,and it is feasible to promote the growth of SMEs.The entry of private equity funds can not only solve the funding difficulties of SMEs,but also have a two-way impact on the corporate governance and management of SMEs.2.Compared with those SMEs that have not cited private equity funds,the growth of SMEs that have introduced private equity funds has been significantly enhanced.The basic regression results show that the entry of private equity funds has significantly promoted the growth of SMEs,but the impact factor is weak.When selecting industry average(PESP?ind)as the instrumental variable and propensity score matching method,the entry of private equity funds has more significantly promoted the success of SMEs.The regression results are tested for robustness by replacing the explained variables and the PSM kernel matching method.The results are also significant,indicating that the regression results are robust.Therefore,the investment behavior of private equity funds has significantly promoted the growth of SMEs.3.An empirical study on the sample of small and medium-sized enterprises that have private equity funds to investigate the impact of private equity funds' investment intensity on the growth of small and medium-sized enterprises is carried out,results are showed as follows:(1)With the return of the foundation,the increase in the proportion of private equity funds can significantly improve the growth of small and medium-sized enterprises,and the influence of the proportion of shares on the turnover rate of total assets maximum.The more frequently private equity funds enter SMEs,the more significant their impact on the growth of SMEs will be.However,the impact of private equity funds on the growth and operational capabilities of SMEs has a robustness problem,which needs further testing.(2)Select the listing life as an instrumental variable for regression.The results show that the shareholding ratio of private equity funds is significantly related to the three growth indicators,and the influencing factors on the growth rate of total assets and return on net assets have changed from negative to positive.The influencing factors on the net return of operating activities have increased.After the introduction of private equity funds,the growth of SMEs has increased significantly.The shareholding ratio of private equity funds is significantly related to the three indicators of operating capability.Compared with the initial regression result,the factors increase,the effect of private equity funds on the operating capacity of SMEs is more stable.(3)Separately consider the entry rounds of private equity funds to conduct an extended empirical study.The results show that the entry of private equity funds from the A round has basically significantly promoted the growth of SMEs and has no significant impact on the Operating capacity of SMEs;When private equity funds enter from round B and multiple rounds,they have a significant positive impact on the growth and operational capabilities of SMEs.Therefore,the more frequently private equity funds enter SMEs,the more obvious the impact on SMEs.On the whole,the entry of private equity funds has a significant positive impact on the growth of invested SMEs.Moreover,the greater the investment of private equity funds,the more obvious the impact on the growth of SMEs.The two research hypotheses of the thesis have been confirmed,and the research questions raised by the thesis have also been fully answered.The main innovations and contributions of the paper are as follows: First,the research perspective is innovative.The topic of this article is based on the research on the relationship between private equity funds and the growth of SMEs.The thesis innovatively uses the investment behavior and investment strength of private equity funds as a research perspective to empirically analyze its impact on the growth of SMEs.Regarding the investment stage of the fund as an aspect of investment intensity,the research perspective is more comprehensive.Compared with previous researches on private equity funds affecting the growth,performance or value realization of small and medium-sized enterprises alone,this article has a new expansion in the perspective of research.Second,there are innovations in research methods.Compared with previous studies,this article innovatively analyzes the impact of private equity funds on the growth of SMEs from two empirical stages,using different samples.Propensity score matching method,least square method,and instrumental variable method are all obtained in this article.Full use,comprehensive research methods.In addition,in the empirical link,the thesis carried out an extended empirical study on the investment rounds of private equity funds for the first time,and realized the integration with the investment practice of private equity funds.In consideration of the robustness of the empirical results,the paper also considered the sample characteristics of the research objects The listing period is used as an instrumental variable,and empirical testing is carried out.The selection of instrumental variable indicators is also the novelty of the thesis.Third,the research content is innovative.Most of the existing studies are purely qualitative analysis or separate quantitative empirical studies.This article firstly analyzes the mechanism and feasible logic of private equity funds influencing the growth of small and medium-sized enterprises.It is believed that private equity funds can influence both corporate governance and operation management.For the growth of the enterprise,I try to discuss the issues raised at the beginning of the article on a theoretical level,and then use empirical chapters to support the research hypothesis,making the research chain more complete.The research conclusion of the thesis answers the research question more completely.Among them,in order to make the empirical research of private equity funds on the growth of SMEs more complete,the paper also introduces the relevant indicators of SMEs' operational capabilities and returns them.This research idea is also an innovative point of this paper.This article depicts 1 diagram,24 tables,includes 211 references.