A Study On The Impact Of Private Equity Funds On The Investment Behavior Of Listed Companies In China

In recent years,private equity fund has developed rapidly in our country.China has become most vibrant private equity market in Asia.Private equity fund is a kind of innovative investment tools,which not only can be used to invest equity of non-listed companies,but also can be used to invest continuously equity of listed companies.Private equity market is an important part of global capital markets,private equity fund for the development of economy of the world,especially Europe and United States,has made great contributions,our government has also given high attention on the development of private equity fund.First of all,this article has made the comprehensive overview on the private equity funds,introducing the concept and classification of private equity funds,basic characteristics,organization form,operation way,exit mechanism and so on,objectively analyzing the present situation of private equity fund in China and expounding the realistic significance of the the development of private equity funds.Secondly,through the empirical study of influence mechanism and effects about private equity investors on the investment behavior of listed companies,my results found that private equity not only suppress for over-investment of free cash flow of listed companies when it involved,private equity funds can improve the external financing environment to a certain extent,but also alleviate the problem of under-investment caused by shortage of cash.From conclusion of empirical study,private equity institutions can solve problem of agency to abuse free cash flow,and it can ease the relationship between the underinvestment problem and financing environment caused by information asymmetry,promoting the standardization and rationalization of investment behavior of the enterprise.From the aspects of operation on private equity funds and the external environment,we can put forward some countermeasures and suggestions for developing private equity fund in China finally.