Private Equity Investment Impact On Share Price Performance Of Listed Companies

At present, PE has been one of the major channels to raise funds for non-f listedcompanies. Studies have shown that PE on the issue price and the market price of the targetcompany are affected. Affect the ways to promote the level of market price suppression(that is, the intrinsic value of the shares issued at a price below the IPO) and the secondarymarket premium (on the secondary market trading price is higher than the intrinsic value ofthe IPO shares). The premium on the primary market and secondary market premiumexcess yields constitute its debut. Excess yields refers to the yield more than normal(expected) yields, reflects a shares at a particular time period relative market returns. He isoften used to measure scholars shares of listed companies.This article USES the first-day excess yields to be explained variable, with356companies listed on the Shenzhen stock exchange as the research object, using descriptivestatistics and the linear regression model, the involvement of the private equity investmentinstitutions in our country are analyzed and listed companies on the correlation of shareprice performance. Based on analysis of private equity investment institutions themselvesfactors influence on its first-day share price performance of the target company. Theempirical results show that:1, the involvement of private equity investment institutio nsand its share price performance is significant positive impact on the first day of the targetcompany.2, private equity investment institutions are investment company shares, thegreater the percentage shares of listed companies performance, the better.3, private equityinvestment institutions is state ownership or non-state ownership and its first-day shareprice performance target company there is no close relationship first. Combined with theresearch conclusion of the article, this article suggested that the regulators and otherrelevant government agencies to improve the system of IPO exit; To perfect the relevantlaws and regulations, mergers and acquisitions for PE investment offers a variety of exitway; Correctly guide the private equity fund investment in the gem listed companies.Suggestions to the listed company as much as possible to cooperate with more mature andmore specification of investors; Can understand the investor’s investment intentions,measure its which have kept broadly in step with their own career development direction,whether can bring enterprises advanced management concept, whether can help enterprisesto improve market competitiveness and so on to help the enterprise development.Finally, pointed out the further research problems of this article: on the basis of thisarticle, based on the time series, the development situation of respondents dynamic tracking, to enrich the research results and enhance the accuracy of the results, Excessreturns in this paper on the basis of exploring its debut on earth is the primary marketcaused by underpricing premium as a result of a secondary market. This article onlyexplained the private equity investment institutions as a whole and its own factors on theirtarget companies listed on the first day of share price performance.