Pes’ Backgrounds, The Listed Company’s Financing And Investment Behavior

In recent years, with the private equity playing an increasingly prominent role inpromoting the development of the global economy, the research of it has become atending. Currently, studies of this field mostly focus on the private equity itself, suchas the introduction of the concept of the private equity, the comparison amongmethods, the analysis of the mechanism, the exploration of the policy, and theselection of investment projects of the private equity, as well as incomes. In contrast,there is little research about the effect of the private equity which appears after itsinvestment companies listed. In addition, the research just simply assumes that theprivate equity exits rapidly after the IPO. In fact, after the IPO, there is a lock-upperiod, instead of a quick exiting.This article is based on the backgrounds listed above. Both the investment inprivate equity and the financing and investment behavior will be integrated and takeninto consideration. In addition, evidential data will be cited into analysis in order toget valid results.Original samples formed by selecting all the A-share listed companies inShanghai and Shenzhen stock exchange from2004to2011. After screening accordingto some particular qualification,938companies remained with the totally number ofsample reaching7504and they are chosen as the basic analytic data in this article.Meanwhile, after the private equity of ten shareholders is introduced as an investmentbackground, sampled companies are divided into PE group and non-PE group. Inaddition, with the basis of research in financing and investment behavior of listedcompanies before, dummy variable is added in order to perform a series of regressionanalysis. At last, the features of PE institution are divided into four parts which areforeign investment, joint investment, reputation and shareholding percentagerespectively. Each feature is studied to find out the further effect to the listed companybehavior.The measure I take in this article is multiple linear regression model analysis.Dependent variable is selected in exceeding investment, insufficient investment andfinance amount. Independent variable is selected in features of company and privatecapital background. Meanwhile, year and style of industry are controlled. After aseries of proving, final conclusion is listed below:(1) The background of privateequity will affect corporation’s finance-investment behavior to some extent.(2) Theimpact which comes from private equity fund of the PE adjusted financing amount is still significantly in different confidence level.(3) Different features of private equityinstitution will have a different degree of effect on its investment and financingbehavior. Finally, according to this conclusion, some proposal will be given to listedcompanies and government and the shortage in this article will be pointed out.