Research On The Impact Of Private Equity Investment To Small And Medium-sized Enterprises Development

Private equity has become one of the hottest topics of the domestic financial sector and the business community.Private equity investment in the field of financing domestic enterprises play an increasingly important role.After the launch of the GEM,with the background of private fast-growing firms attrct a number of investors.China capital market at an early stage of development. The small size of the market,the seriously irrational structure,coupled with their own reasons for SMEs,leading to difficulties of SMEs finace,which seriously hampered the healthy development of SMEs,and SME financing becoming increasingly serious.SMEs introducing private equity investments,can solve financing difficulties,and also can improve the corporate governance structure,accelerate technological innovation,promote industrial upgrading,and improving operational management efficiency,improving business performance,thereby increasing corporate value. Indeed,although private equity in China are extremely active,but as a mature Western capital markets finished products,this investment is beneficial to the long-term development of enterprises,the development of SMEs in China are able to play the role of theory should be carefully thought about.This paper discusses the development impact of private equity investment research on small and medium enterprises,according to research needs,firstly,private equity is defined,introduced the theory of private equity investment and foreign scholars on combing the private equity target Research on the impact of the enterprise.Second,the definition of the four dimensions of evaluation of the development of SMEs,selected operating results,the company values listed performance,corporate governance to measure the development of SMEs.Again, will be factors in private equity in the development of SMEs qualitative analysis,theoretical analysis of private equity investments in small and medium business performance,corporate value,listed the performance impact of corporate governance generated;then select2009-2012In China GEM-listed companies as sample applications,methods and results of operations of the enterprise value of the company,listed on the performance of the corporate governance index using factor analysis conducted to quantify the impact of private equity investments in empirical research generated by SMEs.The empirical support for the sample divided into private companies and non-private enterprise support,using independent samples T-test and non-parametric tests comparative analysis of two samples of operating results,the company value,listed on the first day of the performance and the level of corporate governance differences;also used the multiple linear regression analysis of the impact of private equity investments in the four indicators.Empirical results show that use of its private equity management advantages and industry reputation,invested enterprise management intervention,to bring a positive impact on business performance,thereby enhancing the credibility of the enterprise market,increasing the market value of the business,and improving the IPO reputation,and optimize enterprise corporate governance.Private equity funds not only can bring to businesses,and also promote the comprehensive development of SMEs.Finally,this paper presents policy recommendations to improve the development of private equity investments affect SMEs,and promote the development of private equity investment,expand financing channels for SMEs.