A Study Of Private Equity’s Impact On The Company Value Of The Listed Companies On GEM

In the trend of economic globalization, private equity as a kind of financial innovativeproduct plays an important role in broadening the financing channel and promoting thecompanies’ value been discovered.By the same time, private equity has provided a channelthat is high reward and is playing a key role in the global financial system nowadays.Nowadays, theoretical circles are not yet clear about the effect which Private Equitygives on the economy while their knowledge of the effect main comes from foreign privateequity market. But in view of china is in the transition period, imperfection of system andcorporate governance and the juvenility private equity institutions and managers, it maymake the Chinese market different from the result of foreign research.This paper, by using the principal-agent theory focuses on how the private equityinfluences the invested companies’ value. As the private equity changes the investedcompany’s capital structure and ownership structure to indirectly affect the value of theinvested company, this article focuses on the relationship between the capital structure,ownership structure and company value in theoretical analysis. In order to research therelationship between private equity and value of the invested company, the research objectis divided into two kinds according to the presence of private.