The Study Of Private Equity Investment Impact On Company Value

Private Equity Investment (referred to as "PE Investment"),refers to equity investments in unlisted companies through private way, meanwhile, the future exit mechanism are considered. It provides one more financing channels for enterprises and enhances enterprise value, simultaneously one more investment channels for investors.As a new investment mean introduced from foreign, PE has developed rapidly in China in the past decade. The result seems impressive and it attracts many attentions from scholars, intermediaries, regulators, investors. Since 2012 Although PE suffered a frozen period, but it seems to have become an important and dispensable force in Chinese capital market.As the time when the introduction of PE is late, the first real PE investment case occurs until 2004, coupled with the GEM was just set up at September 30,2009, so the empirical research about the impact of domestic PE on the value of the invested companies is relatively small. Mostly theoretical research locates in improving the recent status of PE investment, operational processes of PE, regulatory institutions, laws and regulations aspects.Firstly, the paper cards the views about PE which is from many domestic and foreign papers, and put forward the base of this paper. It illustrates some concepts which is related to PE investment and the value of enterprise, and soon. At the same time, the paper summarizes the basic theories about the value-effect that the process of PE investment makes on the target enterprise. Secondly, the paper analyzes the present situation of PE investment in China and summarizes the experience which is from some foreign PE case. In the end, the paper makes an empirical analysis by selecting data which is from 343 listed companies, to prove the positive relationship between PE investment and the profitability of the company, and the positive correlation between the profitability of the company and the value of companies through the multiple regression model.This paper adopts the method of combining theoretical analysis and empirical analysis, to conduct quantitative research about the relationship between the PE investment and the value of enterprise. It has very practical significance topics...