An Empirical Study Of Private Equity’ Impact On Small And Medium-sized IT Enterprises In China

Small and medium-sized enterprise is China’s largest and most innovative enterprise group, and, with the deepening of the reform and opening up, small and medium-sized enterprises have played an irreplaceable role in promoting economic growth, promote innovation, increase tax and absorb employment and improve people’s livelihood. In July 2012, the State Council listed the new generation of IT industry as one of the seven key industries and main tasks in "the twelfth five-year" period in""the twelfth five-year" national strategic emerging industry development planning ". It can be said that the stand or fall of small and medium-sized IT enterprises has an important function for the economic transformation.However,because of high investment and high risk, small and medium-sized IT enterprises not only have the problem of the lack of management talent, but also face the worldwide problem of financing for small and medium-sized enterprises. This requires small and medium-sized IT enterprises seek diversified financing channels. Private equity just caters to the characteristics of the small and medium-sized IT enterprises,and it can not only provides financial support, but also provide the follow-up of value-added services. In recent years, the private equity market has been developing rapidly,and on one hand it has become a good investment channel for private capital, on the other hand it solved small and medium-sized IT enterprises’trouble.So we will ask:What the effects the private equity has on small and medium IT enterprises?In order to make PE institutions play their advantages and help "strategic emerging industries" develop rapidly,this paper uses the method of empirical research to test private equity’s effects on small and medium-sized IT enterprises by analyzing the history and status of private equity funds and the existing theories. The results show that private equity has negative impact on small and medium-sized IT enterprises’business performance, and has no significant effect on IPO underpricing.This paper has five parts:first,it introduces the background significance, methods, innovation, insufficiency, future research direction and the basic framework of this article;Second, it introduces the existing research results from three aspects at home and abroad; The third part analyzes the relevant theories of private equity and small and medium IT enterprises, followed by introducing the meaning, organization form, investment process, history and current situation of private equity,and the effects private equity has on small and medium IT enterprises in theory; In the following empirical research, it states the sources of the samples and the data, and then it shows descriptive statistics of the sample, finally it carries out empirical analysis by using the method of independent sample T test and multiple regression;at the end, it summarizes the results of empirical studies, analyzes the reasons and puts forward some corresponding suggestions according to the conclusion.