A Study On The Impact Of Direct Investment In Securities Companies On Invested Enterprises

This paper seeks to study the impact that the securities companies carry out direct investment on the invested enterprise. The paper tries to classify the listed enterprises in accordance with whether they were direct invested before their IPO through the statistical testing method of means test, median test. On the basis of above, this paper carries further breakdown on the sample according to the securities company’s characteristic values, in order to study that different securities company’s characteristic values will have different impact on the invested enterprises.Research results confirms that the securities companies’direct investment can make the enterprises a positive long-term stock returns and excellent financial performance.Through the classification of securities company’s characteristic value, there are further evidence that these positive long-term stock returns and excellent financial performance originsfrom the strong marketscertificationof securities company and the outstanding financial services capabilities of the securities company.ln addition, research through the ownership of securities company research also suggests that direct investment business of securities companies and venture capital firms have similar effects of adverse selection and grandstanding, which is shown by holding a high percentage of the invested enterprise’s performance in the short term is not idealized. The governors and investors in the securities markets can take it into account for the future reference and improvement.