Empirical Analysis On The Corporate Governance Factors To Impact Private Equity's Exit Mechanism Among Listed Companies

Private equity has great incentives to participate to the enterprise's management. They use professional financial expertise and management experience to help the enterprise establish a sound organizational structure and governance model, as well as the development strategy and crisis management. On the one hand, private equity investors could achieve the objective of increasing enterprise value by improving its corporate governance structure; on the other hand, it would reduce agency costs between the company managers and private equity investors, and further reduce the interest conflicts between two parties, which is helpful for private equity to exit successfully. This article will try to find out how important each corporate governance factor would be so that private equity should be concerned. By taking domestic listed enterprises in China as a sample, using binary choice model as well as the cross-section regression model, the paper analyses the factors to impact private equity's exit decision and the exit proceeds, and further explores the significance of various factors, and last comes to the applicative conclusions.