Private Equity Investment Impact On The Performance Of Listed Companies In Shandong Province

Private equity investment is playing a more and more important role in China’s capital market. As an important way of financing, private equity investment provide financial support and value-added services to the invested enterprise. Studying the effect on the performance of the company is of great significance. This would promote the benign interaction between the real economy and capital markets.Theoretically, private equity investment has positive impact on the company’s operating performance. It can provide value-added services,improve principal-agent relationship, optimizing the structure of corporate governance, improve the company’s incentive and constraint mechanism.As a big economic province of China, Shandong province not only have many high quality companies, but also have many property right trading platform, its private equity market is very active. First of all, the theory foundation and the influence mechanism of private equity investment impact on the performance of listed companies are analyzed in detail in this thesis. Then, the private equity investment of Shandong province are analyzed from the investment scale, industry distribution and investment strategy. A detailed analysis of the existing problems in it is followed. Finally, select 54 listed companies’ three consecutive years financial evaluation indicators from Shandong province as sample, and divide them into two groups according the presence of private equity investment. Use the factor analysis method and the Mann- Whitney U test method to do empirical comparison research and made the following conclusions:From the perspective of the comprehensive score, the comprehensive score of listed companies in Shandong province, which has the support of private equity investment, significantly higher than that don’t have. That is to say the private equity investment has a positive impact on the performance of listed companies in Shandong province.From the perspective of the factors, private equity investment can improve the solvency, profitability and shareholder profitability of listed companies in Shandong province, which in turn improves the performance of them.From the perspective of industry, private equity investment have a positive impact on electronic information industry and the pharmaceutical industry enterprises’ performance, the impact on the plastic products industry, chemical industry, material industry’s performance is not obvious. Finally, the thesis puts forward the suggestions of broaden the sources of funding and intermediary institutions to promote the development of private equity investment market in Shandong province.