Research On Performance Evaluation Of Small And Medium Enterprises Financing From Private Equity

The current SMEs in promoting China’s socialist market economic development plays an important role, the development of SMEs can not only make a major contribution for China’s GDP growth and provide more job opportunities for residents in our country, but also solve the employment problem of current social faced in our country. Although SMEs development of society with so many contributions, it is also difficult to effectively solve the financing problem. This article based on the financing difficulties of SMEs, solving these problems to make corresponding measures--private equity financing. SMEs through private equity financing can not only make it out of dilemma in commercial banks as the main financing way, but also improve business performance as well as private equity funds for the creation of high value-added services.Firstly, this paper introduced about the background and significance of private equity financing for SMEs,and then pointed out that the paper based on the new three board market in 2015 has been developed quickly, enterprises listed number broke through 5000 as the background, which can create the good conditions for private equity financing for SMEs and through private equity financing can solve the problem of SMEs’financing. At the same time the paper also introduces the related research at home and abroad about SMEs financing, which can provide reference for the following related studies.Secondly, based on the current situation and existing problems of private equity financing of SMEs, this paper researched on the effects for private equity financing has carried on the qualitative and quantitative analysis. On the qualitative analysis is pointed out that SMEs financing from private equity can bring some financing effects: First, which can promote the enterprise on the market; Second, which can improve the corporate governance level of SMEs; Third, which can improve the company’s equity structure; Fourth, which can provide high value-added services for SMEs. Research on quantitative analysis of the effect brought by private equity financing, mainly based on the new three board market,352 companies listed on the information technology industry as the research object, by building multivariate linear regression model:Tobin’s Q=α1+β1PE+p2Size+(33Lev+θ1 and ROE=a2+P4PE+β5Size+β6Lev+θ2,Tobin’s Q and ROE as the dependent variable, PE as independent variables, the scale of the enterprise and the asset-liability ratio as control variables. Through inspection, we know that PE and Tobin’s Q, ROE was positively related to relationship, namely enterprise private equity financing is helpful to enhance the value of enterprise and business performance. Enterprise’s scale and Tobin’s Q, ROE was also positively related to relationship, namely the enterprise can be in the process of development by expanding the scale to improve the value of enterprises and business performance. But asset-liability ratio are negatively related with Tobin’s Q and ROE. Asset-liability ratio is too high may reduce the value of the enterprise and business performance, so the enterprise need to keep their asset-liability ratio in a reasonable range.Finally, based on the relevant research of this article, making summary to private equity financing for SMEs’effects. In order to promote private equity financing for SMEs and improve the effect of its financing, put forward some countermeasures and suggestions to related subjects, so as to promote the rapid development of SMEs.