Study On How The Private Equity Affect The Stock Price Of Listed Companies On The Growth Enterprise Market

This study used a panel data sample representing of281real estate listed companies in Shenzhen GEM during2009-2011to investigate the effect which with PE or not has emphasized on firm’s stock performance by using descriptive statistical method and building multivariate linear regression model.First, this paper reviews the private equity’s definition, effect, and the development history and present situation in China. This paper summarized the theory which can affect the stock price of listed companies based on the related research literature at home and abroad. Secondly, this paper carried out a descriptive statistical analysis on how private equity affect the stock price of listed companies, and built effect relational model by using multivariate linear regression method on based of practice of scholars both at home and abroad to compare and analysis every explanatory variable.The result which using the software for processing the mixed data of the samples showed that on the first day of the company IPO,PE/VC supported companies’stock price has no better performance than those without PE/VC supported companies. Furthermore,the data of the companies listed in Shenzhen GEM didn’t have positive effect which found in theory in the long run.Finally,the paper reaches conclusions and makes recommendations to the authorities. It suggests the authorities learning from the mature capital market experience all-round. In order to improve the effects of PE on SMEs, the paper makes propose that authorities need to increase the venture capital investments, develop multi-layered capital market system and enhance the corporate governance of SMEs.