A Study On The Impact Of Private Equity Investment To Corporate Governance Of The Small And Medium Enterprises

From the Angle of investment for private equity investment is a specific enterprise, private toprivate capital in the form of equity investment, is a kind of long-term equity financing ofenterprises. Compared with public offering in terms of capital, private equity threshold is low, lessthe cost of financing, very suitable for the small and medium-sized enterprises. For a long time thedevelopment of small and medium-sized enterprises in our country encounter bottleneck, the mainreason is that the financing too narrow, with bank loans is given priority to, more nature of stockand bond financing is obvious. So solve the problem of financing difficulties of small andmedium-sized enterprises are imminent. In mature international capital market, has formed a certainscale of private equity fund raising, it has become more and more important in the business findinga kind of financing way.Private equity investment can not only give the funds needed for the development of small andmedium-sized enterprise, broaden the financing channels, can also provides positive governance inenterprise operation and management factors, supervision and management of enterprise, to helpowners bring good equity structure and improve the corporate governance mechanism and promotethe healthy development of small and medium-sized enterprises in China. At the same time, privateequity investment can drive the rapid progress of China’s high-tech industries, promote the sounddevelopment of our country’s economy.In this paper, on the basis of literature review and theoretical summary, the combination ofspecific analysis of the private equity investment and the relevant theories of corporate governance,and the current situation of corporate governance of our country’s small and medium-sizedenterprises and the problems, analysis of the private equity investment into our country small andmedium-sized enterprises can improve the corporate governance problems in small andmedium-sized enterprises, reduce the information asymmetry between stakeholders, improve theownership structure and board of directors and board of supervisors and management andsupervision mechanism, to further reduce the ownership concentration, to the enterprise brought astandardized management system of independent directors. But also improve the enterprisemanagement level and operation ability, has established the good management incentive andconstraint mechanism, makes the enterprise the internal value of ascension. At the same time, thispaper also concludes with empirical study of the combination of income, We analyze actual raising,further discusses the private equity for small and medium-sized enterprise growth has a promotingeffect, especially in improving corporate governance structure and broaden the financing channelsis of great significance. Finally also pointed out that small and medium-sized enterprises should set out from oneself to take corresponding measures to actively to attract private equity investment,broaden the way of enterprise development, but also about how our country should further promotethe development of private equity investment are proposed.