Empirical Study Of Private Equity’s Impact On The Company Performance Of The Companies Listed On The New Board

Nowadays,the new board is no longer confined to the unlisted companies in Zhongguancun Science Park, but for the unlisted companies equity trading platform over the whole country, and is committed to serving SMEs. Since 2015, the number of companies listed in the new board has grown rapidly, esspecially manufacturing and information technology and other high-tech industries, they accounted for over 70% at the entire three new board industry. During the period of economies transition in China, private equity investment deals and the amount of investment record make double-entry high.Theorists have done a comprehensive discussion on the influence of Private intervention on firm performance, but the main object of study are based on the Main Board or GEM, research on three new board market was less than normal, and was also quite broad, mostly from angle financing, without breakdown of open PE or VC, after all, the investment enthusiasm of three new board is also a rise in the past two years, the enterprise data sources and sample reliability is not as good as the old board.Firstly, we’ll sort out the relevant theoretical achievements and classify the research progress from three angles both at home and abroad, one is two viewpoints of private holdings having an impact on the business performance of the positive and negative; the second is that performance evaluation Research system has a single index and composite indicators, financial indicators and non-financial indicators; Third, outline five common comprehensive performance evaluation methods, and highlights the factor analysis that we are going to use in the upcoming article.Secondly, we’ll rate companies’ performance with PE shareholding in the main part. In this paper, author will select 44 companies from a number of units starts from the new three board listed, describing its financial indicators of three consecutive fiscal years before and after the intervention of private, statistics showed that the performance before the private involvement is superior to the performance after the intervention of private, then we’ll extract 30 representative furniture unit from the 44 samples to compare with the units of no private intervention. Two sets of data were used for factor analysis, conclude principal component from angles of profitability, solvency and operational capacity, getting the performance scores, and found still no private intervention unit average score higher.Finally, in order to verify concrete degree of the involvement of private impacting on business performance, the paper added three control variables such as asset size, asset-liability ratio and earnings per share in the fifth chapter, using multiple regression analysis factors to deeply analysis the corporate performance, finding that PE was negatively correlated with corporate performance at the 0.01 significance level, and there is a significant positive correlation between earnings per share and business performance.